Prolonged U.S. airstrikes on Iran could directly impact South Korea's semiconductor industry, including Samsung Electronics and SK hynix, industry executives warned.
The Middle East is transforming into a global artificial intelligence infrastructure hub with large-scale data center construction. War-related delays could directly reduce semiconductor demand, executives said.
Senior officials from major companies including Samsung Electronics and SK attended a meeting hosted by the Democratic Party of Korea at the National Assembly in Yeongdeungpo-gu, Seoul, on Monday. The session addressed Middle East developments and U.S. tariff negotiations.
Executives noted that 7-8 gigawatts of data center capacity is planned for the Middle East over the next decade, centered on the United Arab Emirates. Construction delays from conflict could disrupt semiconductor exports, they said.
The planned Middle East data center capacity represents 13% of the current global total of 60 gigawatts, according to McKinsey. The UAE Stargate project alone involves initial investment exceeding 30 trillion won ($21 billion) for up to 5 gigawatts of capacity. The Korean government is cooperating on the UAE Stargate initiative.
Data centers require massive quantities of memory chips as large-scale AI infrastructure, positioning the Middle East as a new demand source for Samsung Electronics and SK hynix.
Participants also raised concerns about semiconductor material supply disruptions. Approximately 90% of helium, a key material, is sourced from the Middle East. They called for preemptive measures including supply diversification.
Attendees expressed concern that the Strait of Hormuz blockade is raising logistics and shipping costs across industries. Forty Korean vessels are currently stranded in the strait, including seven oil tankers from GS Caltex and HD Hyundai Oilbank.
"One large tanker carries about 2 million barrels—South Korea's entire daily oil consumption," said lawmaker Kim Young-bae. "With seven tankers stranded, companies are calling for countermeasures."
Lawmaker Han Jung-ae noted that Korea recorded $13.686 billion in exports to the Middle East last year. "If the conflict escalates, exports to seven major countries including Saudi Arabia and the UAE could decline significantly," Han said.
The meeting included Democratic Party lawmakers Han Jung-ae, Kim Young-bae, Jung Tae-ho, and Park Ji-hye. Industry representatives from Samsung Electronics, SK, Hyundai Motor, LG, HD Hyundai Oilbank, GS Caltex, and Hanwha Ocean attended alongside Kim Chang-beom, vice chairman of the Korea Enterprises Federation; Jang Sang-sik, head of the Korea International Trade Association's research institute; and Kim Myung-hee, vice president of the Korea Trade-Investment Promotion Agency.