According to reports, South Korea is facing a severe shortage of critical components for semiconductor equipment—delivery lead times have generally doubled, with some Japanese‑made parts taking as long as 40 months to arrive, and even at a premium they remain unavailable. Japanese suppliers are adopting a cautious approach to capacity expansion, resulting in significant production delays; this pressure has already begun to ripple downstream. Major projects under construction at Samsung's Pyeongtaek facility and SK Hynix's Icheon plant now face the risk of postponement, while AI chip‑expansion plans are running into a "hard wall" in the supply chain.
The AI-driven surge in semiconductor demand is rippling upstream through the supply chain, creating severe bottlenecks at critical component stages. According to industry sources in South Korea, lead times for core components used in semiconductor manufacturing equipment have more than doubled, with some key Japanese‑made parts now facing wait times as long as 40 months. These supply-chain delays not only threaten manufacturers' production schedules but could also impact the capital‑expenditure plans of major global chipmakers such as Samsung Electronics and SK Hynix.
According to a report by South Korea's Electronic Times on September 16, citing industry sources, several domestic semiconductor equipment companies have reported a worsening shortage of components. An executive at deposition equipment manufacturer Company A stated that lead times for relevant parts have extended from the previous four months to ten months. Meanwhile, laser‑process equipment maker Company B is facing an even more severe situation: the lead time for critical Japanese‑made components has stretched to 40 months, and even paying a premium fails to expedite delivery.
Industry insiders warn that the combined impact of component shortages and delayed equipment deliveries will significantly increase the likelihood of delays in global semiconductor manufacturing‑infrastructure investments, with ongoing projects at Samsung Electronics' Pyeongtaek facility and SK Hynix's Icheon plant both facing potential disruptions.
Surging demand has overwhelmed the supply chain.
The immediate trigger for this round of component shortages was the surge in demand driven by the AI boom. As shipments of AI‑related semiconductors and memory chips soared, the demand for semiconductor manufacturing equipment expanded sharply. However, suppliers of key components—such as modules on which equipment production depends—failed to ramp up capacity in advance, creating a supply‑demand gap.
An industry insider stated bluntly, "Even if component manufacturers begin expanding capacity now, they still won't be able to meet current demand." He also noted that, given the uncertainty surrounding when the AI‑driven semiconductor supercycle will end, component firms are generally adopting a wait-and-see approach to large‑scale capacity investments. This is especially true in Japan's component sector: as a key pillar of semiconductor equipment manufacturing, Japanese suppliers have traditionally been cautious about capital spending on production capacity—a trait that has become particularly pronounced amid the current supply crunch.
Although packaging equipment manufacturer Company C has established a domestic supply chain for components, it has nonetheless been affected. A senior executive at the company stated that domestic procurement is performing better than overseas sourcing, yet lead times remain approximately 50% longer than normal—parts for packaging equipment that once arrived within four months now take more than six months to deliver.
Equipment delivery delays are being passed down the supply chain.
Pressure from component shortages has cascaded down the supply chain to the equipment‑delivery stage. Reportedly, semiconductor manufacturers are now experiencing lead times for equipment that have doubled compared with normal levels, with major global chipmakers currently undergoing a period of substantial capital spending being particularly hard hit.
An industry insider in the semiconductor equipment sector predicts, "With equipment delivery delays compounded by shortages of key components, the likelihood of postponements in global investments in semiconductor manufacturing infrastructure has risen significantly," specifically noting that Samsung Electronics' Pyeongtaek project and SK Hynix's Yeoju project will be affected.
This means that South Korea's domestic capacity‑expansion plans, once regarded as one of the key pillars of AI infrastructure investment, are now encountering substantial supply-chain‑related headwinds.
Editor/lambor