South Korea's 3.3% Semiconductor Market Share

In a recent report by BusinessKorea, findings from the Korea Institute for Industrial Economics and Trade (KIET) shed light on South Korea's standing in the global non-memory semiconductor market as of 2022. The report reveals that South Korea held a modest 3.3% market share in this sector, significantly trailing behind Japan, which commanded a market share three times larger.

The comprehensive report underscores that the global non-memory semiconductor market reached an impressive scale of 593 trillion Korean won in 2022. Market distribution among various countries and regions was as follows: the United States dominated with a commanding 54.5% share, equivalent to 323 trillion Korean won; Europe held an 11.8% share, amounting to 70 trillion Korean won; Taiwan, China, captured 10.3% with 61 trillion Korean won; Japan secured 9.2%, equivalent to 55 trillion Korean won; Mainland China contributed 6.5%, totaling 39 trillion Korean won; and South Korea claimed a 3.3% share, amounting to 20 trillion Korean won.

The report further highlights that South Korea's non-memory semiconductor sales for the year 2022 reached an impressive $151 billion, approximately 20 trillion Korean won. This notable achievement was largely attributed to industry leader Samsung Electronics, which accounted for a substantial 73.9% share at $112 billion. Following closely were LX Semicon at $17 billion, representing 11.2%, and SK Hynix at $8.9 billion, contributing 5.9% to the total.

Additionally, recent data published by the South Korean Ministry of Trade, Industry, and Energy (MOTIE) underscores a concerning trend in the nation's export sector. The data, released on September 4th, indicates that South Korea's August exports amounted to $51.9 billion, marking an 8.4% decline compared to the previous year. This troubling trend has persisted for 11 consecutive months since October of the prior year, resulting in an overall decrease of 5.8%.

Furthermore, data from MOTIE and other pertinent agencies released on September 1st reinforces the ongoing export decline, with August exports totaling $51.9 billion, reflecting an 8.4% decrease year-on-year. This sustained export decline, spanning 11 months since October of the previous year, has translated to a cumulative reduction of 5.8%.

Notably, South Korea's semiconductor exports in August reached $8.56 billion, signifying a 20.6% decrease compared to the previous year. However, there is a silver lining, as this figure represents a 15% increase compared to the preceding month. These fluctuations suggest the potential for a recovery trajectory. The semiconductor export sector has shown promising signs of stabilization and growth, with average monthly exports reaching $6.9 billion in the first quarter, $7.5 billion in the second quarter, and reaching an average of $8 billion per month in both July and August. These statistics indicate a burgeoning trend of revival and expansion within the semiconductor export industry.