Chip boom to continue through 2027, South Korea minister tells CNBC
South Korea's finance minister Lee Hyoung-Il said the semiconductor market boom will continue through 2027, despite last week's selloff amid concerns over interest rate hikes and growing competition from China.
"For now, our view is that we can sustain this growth at least through next year," Lee told CNBC on the sidelines of the IMF-World Bank Annual Meetings over the weekend.
"That's because the gap between demand and supply for semiconductors is still very wide, and supply is still being expanded," he pointed out.
Lee noted that chip stocks' large weighting fueled volatility in South Korea's stock market this year. Samsung (SSNLF) and SK Hynix (SKHY) together account for about half of the Kospi index weight.
The chip boom has also boosted tax revenue in South Korea, with the country set to collect more taxes this year than previously expected. South Korea will ultimately be in a stronger fiscal position as a result of the semiconductor boom, Lee affirmed.
Recommended For You
Register for free to keep reading.
Create a free account to get unlimited breaking news and alerts when your stocks move.
KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.