Seoul: Demand for global artificial intelligence (AI) chips is expected to reach a short-term peak in 2028, potentially to help double sales of South Korean-made chips from current levels. Roh Geun-chang, the head of Hyundai Motor Securities Co.'s research center, made such an assessment at a press conference held at the Korea Exchange, the country's main bourse operator, in western Seoul.

According to Yonhap News Agency, Roh stated that AI chip demand is anticipated to peak by 2028, with Nvidia Corp. expected to invest approximately US$1 trillion in data center infrastructure. This demand is driven by the need for AI-related infrastructure, such as AI servers.

Roh projected significant growth in the market for high bandwidth memory (HBM) this year, with expectations to reach $41.6 billion, marking a 125.5 percent increase from the previous year. He suggested that if the capacity of HBMs increases by 2.5 times, sales for South Korean semiconductor companies could nearly double over the next three years.

Roh also estimated the memory chip market to reach a record high of $201 billion, while the foundry market is anticipated to grow by 22.1 percent year-on-year to $170.8 billion. Despite concerns over the rapid rise in chip stocks, local semiconductor companies are expected to perform well until 2028. Semiconductors are predicted to play a pivotal role in enhancing the country's benchmark stock gauge.