“I expect that the emergence of DeepSeek in China will play a significant role in the dissemination of artificial intelligence (AI). This will ultimately have a positive contribution to the semiconductor industry, driving the expansion of semiconductor demand.”
Kwak Noh-jung, president of SK hynix, spoke with reporters after the Leadership Dinner Session of SEMICON Korea 2025, held on the 19th at the Grand InterContinental Seoul Parnas in Gangnam, Seoul. As the president of the Semiconductor Industry Association, Kwak delivered a welcoming speech at the event.
Kwak dismissed concerns that the AI model released by DeepSeek in China could dampen demand for high-performance semiconductors. DeepSeek unveiled a similar level of AI model at a cost one-tenth that of global big tech companies, leading to speculation that demand for AI accelerators manufactured by NVIDIA and others might decline. As SK hynix supplies high-bandwidth memory (HBM) to global AI accelerator corporations like NVIDIA and AMD, concerns have been raised about whether competitiveness would weaken as a result.
Kwak noted, “I cannot mention demand for specific products like HBM, but I believe that the emergence of DeepSeek will be a pivotal moment for AI to permeate and spread throughout the industry,” adding, “In the long run, it will ultimately stimulate semiconductor demand and present much larger opportunities.”
He predicted that NAND flash memory, which has been experiencing a price decline due to oversupply, will gradually see a recovery in demand. Kwak said, “I expect things to improve somewhat by the end of this year,” and added, “The industry is making efforts for market stabilization, so I think there will be signs of recovery.”
According to market research firm TrendForce, the NAND flash memory market is expected to continue to see price declines due to oversupply in the first quarter of this year. However, in the second half of the year, market demand and supply balance is expected to improve significantly due to production cuts by major NAND flash memory manufacturers.
As his term as chairman of the Semiconductor Industry Association comes to an end, Kwak shared his thoughts on the matter. He said, “The semiconductor industry has never stood at the center of history like this,” adding, “We have experienced an unprecedented recession, but with the advent of the AI era, it is now time to make good use of this opportunity. Additionally, with increasing uncertainties surrounding the semiconductor industry, I will do my best to support the industry even after my term as chairman ends.”
Following Kwak, Song Jae-hyuck, Chief Technology Officer (CTO) of Samsung Electronics, has been designated as the next chairman of the Semiconductor Industry Association. Since the first chairman Kim Kwang-ho in 1991, the chairman role has alternated between the top executives of Samsung Electronics and SK hynix. Samsung Electronics has recommended Song as the next chairman to the Korea Semiconductor Industry Association, and it is reported that his election will be confirmed at the regular general meeting of the association scheduled for early next month.