--- title: "Former Samsung Semiconductor President: Predicts Memory Prices to Start Falling in Second Half of Next Year as Chinese Companies Aggressively Expand Production" type: "News" locale: "en" url: "https://longbridge.com/en/news/286834660.md" description: "Kyung Kye-hyun, former president of Samsung Electronics' semiconductor division, issued a public warning: driven by significant capacity expansion by Chinese companies, global memory chip supply will surge in the second half of next year, potentially leading to price declines; if capital expenditure returns for major tech companies decline, memory demand itself faces the risk of contraction after 2028" datetime: "2026-05-19T01:05:01.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286834660.md) - [en](https://longbridge.com/en/news/286834660.md) - [zh-HK](https://longbridge.com/zh-HK/news/286834660.md) --- # Former Samsung Semiconductor President: Predicts Memory Prices to Start Falling in Second Half of Next Year as Chinese Companies Aggressively Expand Production As the memory chip industry continues to enjoy a super-cycle boom driven by AI, a former industry leader deeply involved in the sector has begun issuing warnings. On May 18, at the 285th forum of the National Academy of Engineering of Korea (NAEK) held in Seoul, South Korea, Kyung Kye-hyun, former president of Samsung Electronics' Device Solutions (DS) division and current resident advisor, delivered a keynote speech predicting that global memory chip prices would begin to fall in the second half of next year. According to South Korea's Securities Daily, this marks his public stance on the current direction of the industry cycle. Kyung, who previously served as CEO of Samsung Electronics, is one of the most influential voices in South Korea's semiconductor industry. During his speech, he stated, "Chinese companies are aggressively expanding capacity. As memory supply surges in the second half of next year, the market could shift, with this situation occurring no later than the first half of 2028." Citing data from multiple global market research firms, he pointed out that the rapid expansion of global memory capacity will directly drive down prices. Kyung's warnings extend beyond prices. He further noted that if returns on capital expenditure for Big Tech companies begin to decline, these companies may cut back on investment. Should this occur, not only prices but also the demand for memory chips themselves could contract after 2028. This logic is straightforward: the core driver of current memory demand is the construction of AI data centers, with tech giants continuously spending heavily on servers and computing power. However, if the commercial returns on AI investments fall short of expectations, capital expenditure will slow down, causing memory demand to cool off. ## South Korea's Structural Weaknesses While acknowledging the achievements of South Korea's memory industry, Kyung also directly highlighted structural vulnerabilities. He stated that while South Korea holds a significant share in the DRAM market, its global share in the chip design (Fabless) sector is only 1.5%. Unlike Taiwan, South Korea lacks a "full-stack" semiconductor ecosystem covering both design and manufacturing. His recommendation is that South Korea must transform into a Deep Tech manufacturing nation. It should not only maintain its memory advantages but also build independent capabilities in system semiconductors and Sovereign AI, applying these technologies to the manufacturing sector. He also acknowledged the reality of the competitive landscape: "It is difficult to compete with both the United States and China in hardware and software simultaneously. The key is to focus on what South Korea does well and seriously consider how to integrate AI." ### Related Stocks - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [09747.HK](https://longbridge.com/en/quote/09747.HK.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [07747.HK](https://longbridge.com/en/quote/07747.HK.md) - [DRAM.US](https://longbridge.com/en/quote/DRAM.US.md) - [SMH.UK](https://longbridge.com/en/quote/SMH.UK.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) ## Related News & Research - [EXCLUSIVE-At Samsung, the global AI boom spurred a looming strike and deep divisions](https://longbridge.com/en/news/286685205.md) - [Why Micron (MU) Stock Is Up Today and Why BofA Thinks It Can Still Go Higher](https://longbridge.com/en/news/286280489.md) - [AI boom puts SK Hynix on the cusp $1 trillion market value](https://longbridge.com/en/news/286347462.md) - [South Korea floats AI profit social tax as tech giants boom](https://longbridge.com/en/news/286047339.md) - [EXCLUSIVE-At Samsung, the global AI boom spurred a looming strike and deep divisions](https://longbridge.com/en/news/286544840.md)