Asia’s AI boom could end in a ‘chip wreck’

TOKYO – South Korea is sitting on a winning lottery ticket. The country has landed, almost by accident, at the center of the artificial intelligence (AI) boom. Six months ago, companies like SK Hynix and Samsung were preparing for trouble. Now, they are cashing in. But experts warn this good luck may not last. The frenzy around AI chips – the specialized semiconductors that power AI systems – has pushed demand to record highs. However, history shows that such booms often end in a “chip wreck,” or a sudden collapse in prices and profits. South Korea’s economy depends heavily on chip exports. If global demand for AI slows, the country could face a painful downturn. For now, the party is still on. But the hangover may be coming.