New Delhi, Sept. 11 -- Artificial intelligence (AI)-led demand is driving a strong upcycle in the semiconductor industry, with memory chips emerging as a key beneficiary of rising technology investments, according to a Jefferies report.

The report highlighted that the AI capex cycle has strengthened demand for semiconductors, particularly in Korea, where chip exports and production have become major drivers of economic growth.

The report, said Korea's economy has become increasingly dependent on AI-related capital expenditure, with semiconductor manufacturing contributing significantly to recent growth. It noted that manufacturing of computers, electronics and optical products contributed 1.9 percentage points, or 51 per cent, to Korea'...