South Korea's memory-chip exports surge 277% as system chips slip

The surge in memory chip exports signals sustained global demand for AI and data center infrastructure, particularly driving growth in HBM and LPDDR technologies amid server market recovery. Meanwhile, declining system chip exports highlight intensified competition in advanced process nodes, especially in advanced packaging and heterogeneous integration, where South Korean firms face pressure from TSMC and Samsung. Geopolitical tensions, particularly U.S.-China tech rivalry, are reshaping supply chains, forcing companies to reassess manufacturing and sourcing strategies in China to mitigate compliance risks. In response, industry players may accelerate capacity shifts to Southeast Asia to reduce geopolitical exposure. Over the next 12–24 months, memory pricing volatility and AI compute demand will be key determinants. If server demand remains weak, system chips could face further contraction. Technologically, 2.5D/3D packaging and silicon photonics are emerging as critical enablers, pushing the industry toward higher-value segments.