South Korean semiconductor production and exports both exceeded last year, but export quotas plummeted

According to businesskorea, semiconductor industry observers predicted earlier this year that the Korean semiconductor industry will slow down in 2019.

However, according to data released by the Ministry of Trade, Industry and Energy and the Korea International Trade Association on November 4, South Korea’s semiconductor production and exports exceeded the previous year in the first ten months of this year, and semiconductor exports have been since July. Growth has been achieved for four consecutive months.

Specifically, as of October 25, South Korea’s total semiconductor exports were 2557.2 tons, an increase of 16% from 2204.4 tons in the same period last year, maintaining a four-month growth. At the same time, the cumulative export volume this year was 29,834.1 tons, an increase of 5.2% over the same period last year. In particular, since July, monthly exports have shown double-digit growth.

With the steady growth of semiconductor exports, semiconductor production continues to grow. According to a report from the Korea Bureau of Statistics, semiconductor production in the third quarter of this year increased by 8.3% over the same period last year. The first quarter increased by 7.9% and the second quarter increased by 7.3%.

According to industry experts, this may be due to the “over-gap premium” enjoyed by Korean chipmakers in the global market, where exports may increase as global electronics companies adjust their semiconductor inventories.

However, it is worth noting that Korean semiconductor exports have plummeted relative to the growth in production and exports. This is mainly due to the sharp decline in the price of memory such as Samsung Electronics and SK Hynix's DRAM and NAND flash memory, which led to a sharp fall in Korean semiconductor exports.

Data show that South Korea's semiconductor export revenue this year was 78.765 billion US dollars, down 26.3% from the same period last year.

However, some professionals predict that South Korea’s semiconductor export revenue will increase significantly this year.

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