Chang Wei Liang at DBS Group Research notes that KRW is currently the best performing Asian currency, supported by strong semiconductor demand and reported FX intervention coordination between Korea, the US and Japan. Despite equity volatility in Korean chip stocks, physical memory demand and AI-related semiconductor needs are driving a terms-of-trade boom, reinforcing DBS’s preference to stay short USD/KRW on ongoing intervention risks. Semiconductor boom and FX support"KRW is the best performing Asian currency this week, lifted by strong semiconductor demand and intervention risks." "Despite equity market volatility due to a correction in Korean semiconductor stock prices, physical demand for memory chips has not seen any correction and is powering memory prices to new highs." "AI-related semiconductor demand is fuelling a massive term of trade boom for the Korean economy, and KRW is just beginning to benefit from this."