South Korean chip industry suffered a cold winter: semiconductor production fell 17.1% in February from a month earlier, the biggest drop in more than 14 years
CTOnews.com March 31 news, South Korea is an important country in global chip manufacturing, but recently it is facing declining demand, increased inventory, increased competition and other difficulties. South Korea's semiconductor production fell 17.1% in February from a month earlier, the biggest drop in more than 14 years, according to data released by the South Korean Statistics Office on Friday.
Semiconductor production fell 17.1 per cent in February, the biggest month-on-month decline since December 2008, when semiconductor production plummeted 18.1 per cent, according to Tu Yuan Pexels. Semiconductor production decreased by 41.8% in February compared with the same period last year.
A source from the Korean Statistical Office said that since the second half of last year, the global demand for memory chips has weakened, and the production of system semiconductors has also declined recently.
According to CTOnews.com, South Korea's chip industry is an important pillar of the country's economy, accounting for 12% of total exports in February. However, due to the decline in global demand for chips, South Korea's economy is facing greater difficulties, with negative growth in the last quarter.
In order to meet this challenge, the South Korean government hopes that the economy can recover in the second half of the year and continue to support semiconductor investment as a key driver of economic growth. On Thursday, South Korea's parliament approved a plan to boost the semiconductor industry, offering tax breaks to companies to stimulate investment.
However, South Korea's chip industry also faces geopolitical risks and the threat of a potential recession. As central banks tighten monetary policy to cope with inflation, the recession could further hit demand. In addition, the continued layoffs of US technology companies also reflect a decline in investment enthusiasm.
On the other hand, south Korea's total industrial output fell 8.1 per cent in February from a year earlier, exceeding market expectations. The cyclical leading index also fell 0.3% from the previous month.
