The Bank of Korea has signaled that the global semiconductor market remains undersupplied, with the central bank expecting the current artificial intelligence-driven supercycle to continue for the foreseeable future.
In a report released on Friday, the lender explicitly dismissed growing market concerns that the sector’s rapid expansion is nearing a peak.
This institutional endorsement of sustained demand arrives as Asian equity markets have posted broad gains, fueled by strong buying interest in the technology sector.
The rally has been underpinned by robust earnings reports and optimistic forecasts from major US semiconductor firms, including Micron Technology and Qualcomm, which helped alleviate earlier investor anxiety regarding a potential slowdown in chip demand.
The Bank of Korea’s stance provides a critical counter-narrative to bearish views that have circulated in recent weeks.
By characterizing the market as structurally undersupplied rather than cyclical, the central bank suggests that the capex cycle supporting AI infrastructure build-out has significant runway remaining.