Signals of a cooling trend in AI chips? South Korea's semiconductor production declines for the first time in 14 months

The AI chip industry continues to show signs of cooling. On October 31, Thursday, the latest industrial data released by South Korea's government statistics office indicated that South Korea's semiconductor production fell by 3% in September, marking the first decline in 14 months, following an 11% increase in August. Additionally, the growth rate of South Korea's semiconductor shipments slowed from 17% in August to 0.7% in September. However, inventory levels show that South Korea's semiconductor inventory is still being consumed at a relatively fast pace, with September inventory down 41.5% year-on-year. Meanwhile, Samsung Electronics announced its third-quarter financial report today, revealing that its semiconductor division (DS) recorded an operating profit of only 3.86 trillion won (approximately $19.918 billion), far below the market's general expectation of 6.7 trillion won, and a significant quarter-on-quarter decline of 40.15%. Since July 9, Samsung's stock price has dropped by 32%, with a market value evaporating by $122 billion. Analysts believe that this data may indicate that the semiconductor industry's boom cycle driven by global AI development is gradually cooling, as the demand for memory chips has peaked. As the largest driver of South Korea's exports and economic growth, the performance of the semiconductor industry is also being closely monitored by the Bank of Korea—some economists predict that if South Korea's economic momentum slows beyond expectations next year, the easing cycle will accelerate