October 10, 2024 /SemiMedia/ — In August, South Korea’s semiconductor inventory saw its steepest decline since 2009, dropping by 42.6% year-on-year, driven by rising demand for high-performance memory chips used in artificial intelligence (AI) development. This marks a sharper decrease than the 34.3% reported in July, according to data from Statistics Korea.

South Korea’s chip inventory drops 42.6% in August-SemiMedia

Production and shipments of chips increased by 10.3% and 16.1%, respectively, indicating that the semiconductor boom extended through much of the third quarter. This data suggests continued growth in the sector, which is crucial for South Korea’s trade-dependent economy, where memory chips are a major contributor.

Samsung Electronics and SK Hynix, two of the country’s top performers, are central to this trend. South Korea is set to release export data for September, including semiconductor shipments, which may provide further insight into the market's health. Since May, chip export growth has slowed, raising concerns about the long-term strength of the boom.