Korean Semi Shipments Soar in December

In December, Korea's semiconductor factory shipments experienced a remarkable increase of 113.7% year-on-year, marking the largest jump in a single month since 1997, as reported by Statistics Korea, the national statistics office. This surge in shipments is a positive sign for the industry, indicating a potential recovery from the recent downturn.

Furthermore, inventories also saw a modest rise of 11.6%, which is the smallest increase since the collapse in demand that occurred in late 2022. This suggests that the market is stabilizing and finding a balance between supply and demand.

Production in the semiconductor sector witnessed a significant rise of 53.3% year-on-year, representing the largest monthly increase since mid-2016. This growth in production is a promising development for the industry, indicating a potential resurgence in manufacturing activities.

The recent statistics align with the performance of Samsung Electronics Co., the world's largest memory-chip producer. Samsung announced semiconductor sales of 21.7 trillion won ($16.3 billion) in the last quarter, surpassing expectations. However, despite the positive sales figures, the chip division still reported operating losses of 2.2 trillion won, highlighting the ongoing challenges faced by South Korea's largest sector.

It is worth noting that Korea currently supplies two-thirds of global memory production. This dominance in the market positions Korea as a key player in the semiconductor industry, and the recent growth in shipments and production further solidifies its position.