South Korea’s semiconductor industry is heavily dependent on the memory chip market, and the authorities’ February statistics show no sign of the industry improving. Year-on-year, the chip production volume fell by 41.8%, reaching the lowest level since 2008.
At the end of January, the decline reached 33.9%, it was pointed out Bloomberg, and accordingly, in February, the situation with the release of semiconductor components in South Korea deteriorated. Shipments of new products from local companies fell 41.6%, but inventories rose 33.5% at the same time. The market continues to suffer from the overproduction of semiconductor components in general and memory chips in particular.
In February, 12% of South Korea’s export earnings were made up of overseas shipments of semiconductor products. In the past quarter, key indicators of the local economy have already deteriorated compared to the previous reporting period, and the current sales momentum in the semiconductor segment does not bode well for the country.
Measures to stimulate chip production in South Korea will only bear fruit in the long term, but for now the industry must grapple with the aftermath of the overproduction crisis – one of the worst in history. In general, South Korea’s industrial production index fell 8.1% in February from the same month last year, falling short of analysts’ expectations.