Bank of Korea warns chip exports could fall by up to $100 billion
In a pessimistic scenario, South Korea's semiconductor exports would come in $50 billion to $100 billion below forecasts if U.S. tech giants slow spending. Chips make up about half of exports.
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South Korea's central bank has warned that the country's chip exports could fall $50 billion to $100 billion short of earlier forecasts if U.S. technology companies slow their artificial intelligence spending next year, Reuters reported, citing a written response from the Bank of Korea to lawmaker Ahn Do-geol.
The scenario assumes a 10% decline in Korean semiconductor prices. Economic growth next year would then be about 0.4 percentage point lower, and the current account surplus well below the bank's initial 2027 projection of $430 billion. Chips account for roughly half of South Korea's exports.
The central bank also cautioned that considerable uncertainty remains over the path of AI demand and the broader memory chip cycle, Reuters reported.