Significant signals are emerging from the chip sector. According to the latest data, in the first 20 days of this year, South Korea, often dubbed the global economy's "canary in the coal mine," exported semiconductors totaling $10.73 billion (approximately RMB 74.7 billion), representing a massive year-on-year increase of over 70%. This indicates that global semiconductor demand remains exceptionally strong, driven by the wave of AI (Artificial Intelligence). Influenced by this, shares of memory chip giant Samsung Electronics surged, gaining over 3% at one point during trading on the 21st. Last night, chip stocks generally rose, with the Philadelphia Semiconductor Index climbing 3.18% to refresh its historical high. Intel surged over 11%, Advanced Micro Devices gained more than 7%, Micron Technology rose over 6%, ARM increased over 6%, Microchip Technology advanced over 4%, while Broadcom fell more than 1%. Prior to this, US-listed memory chip concept stocks also soared across the board on Tuesday, with SanDisk skyrocketing over 10% at one point. Some institutional analysis points out that the current round of memory chip price increases is not driven by short-term market sentiment but is the result of dual factors: "limited advanced process capacity" and "rigid growth in AI server demand." Its sustainability is significantly stronger than in previous cycles. Surge Over 70% Data disclosed by South Korean customs authorities on local time January 21st shows that during the period from January 1st to 20th, 2026, South Korea's exports reached $36.36 billion, a year-on-year increase of 14.95%; imports were $36.98 billion, up 4.2% year-on-year, resulting in a trade deficit of approximately $600 million. By product category, semiconductor exports in the first 20 days of this month reached $10.73 billion, a substantial 70.2% increase compared to the same period last year, accounting for 29.5% of total exports—a significant 9.6 percentage point increase from the previous year. Exports of petroleum products amounted to $2.46 billion, up 17.6% year-on-year; exports of steel products were $2.4 billion, showing a slight increase of 1.2%. However, auto exports fell 10.8% year-on-year to $2.87 billion, while ship exports saw a significant decline of 18.1%. As a major global semiconductor exporter, home to two memory chip giants—Samsung Electronics and SK Hynix—South Korea has become one of the biggest beneficiaries as the global AI boom substantially boosts demand for memory chips. Bolstered by semiconductor demand, South Korea's exports in December 2025 grew 13.4% year-on-year to $69.6 billion, marking the 11th consecutive month of year-on-year growth. For the full year 2025, South Korea's total exports reached a record high of $709.7 billion. This is the first time in history that the country's annual exports have surpassed the $700 billion mark. Furthermore, according to the latest data released by South Korea's Ministry of Science and ICT, thanks to expanded demand for high-value-added memory and sustained price increases for general-purpose semiconductors like DRAM, South Korea's semiconductor exports for the full year 2025 reached $173.48 billion, a 22.1% year-on-year increase. This marks two consecutive years of double-digit growth and a new historical high. Significant Upward Revisions Citigroup has significantly raised its price targets for memory chip giants, increasing its target for SanDisk from $280 per share to $490 per share—a substantial hike of 75%. Citigroup stated it is optimistic about strong data center memory demand, favorable supply-demand conditions, and the company's strong competitive moat. SanDisk's market share in the enterprise solid-state drive segment is expected to continue growing. Simultaneously, Citigroup maintained its "Buy" rating on Seagate Technology and raised its price target for the stock from $320 per share to $385 per share, an increase of approximately 20%. Additionally, Citigroup raised its price target for Western Digital from $200 per share to $280 per share, an increase of about 40%. Citigroup noted in its report that these companies remain primary beneficiaries of "strong demand from hyperscale data centers supporting rising storage prices." Hyperscale data center spending "remains robust," which will drive demand for power, storage, connectors, and fiber optics. Divya Mathur, an emerging markets equity portfolio manager at US asset management firm ClearBridge Investments, also explicitly stated that the AI-driven demand for memory chips is currently significantly underestimated by the market. Furthermore, an operations executive from Micron Technology emphasized in a recent interview that the global memory chip shortage continued to intensify over the past quarter, and this supply tightness is expected to persist beyond 2026. PC and smartphone manufacturers are also joining the "scramble," attempting to lock in memory chip supply for beyond 2026. The core reason is the explosive growth in demand for high-end semiconductors driven by AI infrastructure construction. SK Hynix revealed that its chip production capacity for 2026 is already completely sold out, and its high-end memory products for AI have also been fully booked. TrendForce also pointed out in its latest report that the current memory chip price hikes are not driven by short-term sentiment but by the dual forces of "limited advanced process capacity" and "rigid growth in AI server demand," making this cycle's sustainability markedly stronger than historical ones. Data shows that capital expenditure from the world's top eight cloud providers in 2025 is projected to surge approximately 65% year-on-year. Annual reports from both IDC and Gartner confirm that AI servers have become the fastest-growing segment in data center IT investment, and storage systems, as critical infrastructure, will significantly benefit from this trend.
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