The AI-driven semiconductor supercycle accelerates - ISI Markets

As artificial intelligence continues to advance, the global semiconductor industry is entering a new phase referred to as the 'supercycle,' distinct from previous cycles driven by inventory adjustment... Read original →

The AI infrastructure buildout is triggering a cascading redesign across the semiconductor stack: TSMC’s (Taiwan, China) dominance in 3nm and EUV isn’t just a tech advantage—it forces Samsung and SK Hynix into aggressive HBM4 and DDR5 yield ramps. Extended equipment lead times and server OEMs pre-booking capacity reveal acute supply fragility. U.S. export controls on advanced nodes have already inflated global compliance costs, compelling firms to build geopolitically redundant fabs at the expense of capital efficiency. While NVIDIA maintains GPU hegemony, Samsung counters with integrated HBM+SSD solutions, and SK Hynix deepens CoWoS packaging ties with TSMC. Over the next 18 months, memory will exceed 40% of AI server BOM costs, sustaining premium pricing for enterprise SSDs and HBM—yet Korean margins face dual pressure from a weak won and potential U.S. election-driven restrictions on China-facing tech collaboration.