South Korea Sees a Huge Rise in Semiconductor Production
It is expected to continue rising steadily as semiconductors account for the largest share of South Korea's exports.
South Korea's semiconductors witnessed a rise in production in February 2024, making it the most in 14 years, indicating a growing recovery in the country's industrial sector and global tech demand.
The South Korean statistics agency (KOSTAT) released a data report on Friday that showed a 65.3% rise in the country's semiconductor production, the biggest rise dating back to late 2009. Also, the report indicated that shipments of these semiconductors rose by 59%, although it was a slight decline from the 62.7% it achieved in January.
These figures indicate that domestic economic growth will continue to rise steadily so long as semiconductors account for the largest share of South Korea's exports.
South Korea's semiconductor industry began in 1965 and by 1983 it became the third country in the world to develop 64K DRAM after the U.S. and Japan. It continued to grow through the 80s as semiconductors continued to be used in computers, smartphones, and related devices.
In January 2024, the government announced plans to invest about $470 billion over the next 23 years to build the world's largest semiconductor cluster in a large production complex in partnership with Samsung Electronics and SK Hynix. By 2030, South Korea aims to increase the self-sufficiency ratio of essential materials, parts, and equipment for chip production to 50 per cent.
