AI chip boom lifts South Korean semiconductor materials makers' profits in 2Q26

The AI chip boom is reshaping the profitability landscape of South Korean semiconductor materials firms. As demand surges for high-purity substrates, photoresists, and electronic gases used in advanced nodes, Q2 2026 saw a notable profit uptick among key suppliers. Technologically, this investment wave is driving upstream vendors toward finer process capabilities, reinforcing vertical integration from materials to chips. From a compliance standpoint, geopolitical tensions are heightening supply chain risks, prompting firms to diversify and localize sourcing, especially for critical inputs. In competitive terms, Korean players are leveraging partnerships and capacity expansion to maintain dominance, while U.S. and European firms may seek market entry opportunities. Over the next 12–24 months, as AI data centers and server infrastructure scale, material demand is expected to sustain growth, likely triggering another wave of capacity expansion across the industry.