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South Korean semiconductor equipment exports to China continue to grow, reports say

SemiMediaEdit
May 8, 2024

May 8, 2024 /SemiMedia/ -- According to reports, South Korea’s total exports of semiconductor equipment to China were $149.69 million in January and $148.99 million in February, which is higher than the same period from January to February 2022. Compared with two years ago, the figure increased by 7.8% in January, and increased by 20.2% in February.

The report pointed out that the export growth was mainly attributed to the improvement of the conditions of the semiconductor industry and the process upgrading of Korean companies. Additionally, the AI boom is driving demand as companies increase their purchases of semiconductors optimized for AI computing, thereby driving purchases of semiconductor equipment.

Analysts also believe that the recent expansion of China's traditional semiconductor industry is a favorable factor for Korean equipment companies. Although traditional semiconductors have lower added value compared to advanced semiconductors, they are critical for weapons systems, cars, aircraft and robots, accounting for 75% of total semiconductor demand.

"Traditional equipment faces less competitive pressure than advanced equipment, which gives Korean equipment manufacturers more breathing space. Although individual contracts may differ, there is enough room to show competitiveness in terms of pricing," said an industry insider.

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