SK Hynix CEO Noh-Jung Kwak, reflecting on the emergence of China's DeepSeek, predicts that the generative AI model will ultimately have a positive impact on the semiconductor industry in the long run.
According to a report by ET News, Kwak recently addressed questions regarding DeepSeek's influence on the industry. While he refrained from discussing specific products, he acknowledged that while there may be short-term fluctuations, the model will play a significant role in driving the adoption of AI.
Kwak emphasized that AI is set to expand across industries and society, which will, in the long term, stimulate semiconductor demand and create new opportunities.
Some analysts have previously speculated that DeepSeek, with its cost-efficient approach, could slow demand for high-bandwidth memory (HBM), potentially affecting South Korea's memory chip industry, including SK Hynix.
However, Kwak's remarks suggest otherwise. He believes DeepSeek will accelerate AI adoption, and as global tech giants intensify their competition, they will continue investing in AI innovation. As a result, HBM demand is expected to remain strong in the medium to long term.
Regarding the struggling NAND Flash market, Kwak noted that the entire industry is working to stabilize the sector, with recovery anticipated by the end of 2025. Meanwhile, in the DRAM segment, reports suggest that NVIDIA is promoting a new AI PC-oriented DRAM module called "SOCAMM." Kwak stated that as AI semiconductors diversify into GPU, TPU, and other segments, DRAM applications will also become more varied. Customers will assess performance and cost-effectiveness when making their decisions.
Additionally, Kwak is set to step down as chairman of the Korea Semiconductor Industry Association by the end of February 2025. His successor will be Jai-Hyuk Song, Chief Technology Officer (CTO) of Samsung's Device Solutions (DS) division.
