S. Korea's chip production falls for first time in over a year

South Korea's semiconductor production fell from a year earlier for the first time in more than a year, in another sign that a boom cycle fueled by artificial intelligence (AI) development worldwide may be starting to cool.

Nationwide semiconductor production slid 3 percent in September, a sharp reversal after it gained 11 percent a month earlier, according to official data released on Oct. 31. The growth in shipments also slowed to 0.7 percent from 17 percent in August.

Still, inventory levels showed stockpiles continue to be worked through at a rapid clip, as they declined 41.5 percent from a year earlier in September.

The numbers paint a picture of an industry that may be cooling gradually as demand for memory chips peaks.