Memory Chip Prices Rise in March as Google Compression Tech Sparks Demand Concerns
South Korea’s Kospi surged 9% as chipmakers led a rebound, with Samsung Electronics up 13% and SK Hynix up 11%. Memory product prices rose in March, while concerns that Google’s compression technology could sap future memory demand weighed on the sector.
1. Market Rebound Driven by Chipmakers
South Korea’s benchmark Kospi jumped 9% on renewed risk appetite, led by chipmakers. Samsung Electronics gained 13% and SK Hynix climbed 11%, powering the Kospi’s largest one-day advance in months and triggering a brief circuit break on the smaller Kosdaq gauge.
2. Memory Product Price Increase
Data showed memory product prices rose in March, reinforcing expectations that demand from artificial intelligence applications remains robust. Higher prices have provided a tailwind for memory makers still reeling from earlier sell-offs.
3. Google Compression Technology Concerns
Investors remain cautious over Google’s advanced compression technology, which could reduce the need for raw memory capacity and potentially dampen future sales for chipmakers. These concerns have introduced a headwind even amid the broader market rally.
4. Geopolitical Risk Easing
Hopes for a resolution to the Iran conflict have lifted global risk sentiment, helping reverse a four-day slide that pushed Korean stocks toward bear-market territory. Market participants warn that lingering uncertainties could still trigger volatility.