“Semiconductors support”… This year’s second export is likely to exceed 100 billion dollars

It is expected that this year’s semiconductor exports will exceed 100 billion dollars for the second time in history. Semiconductor facility investment is also expected to rise to the world’s No. 1, surpassing China and Taiwan.

According to the ‘2020 semiconductor market trends and 2021 forecasts’ released by the Ministry of Trade, Industry and Energy and the Semiconductor Association on the 5th, last year’s semiconductor exports recorded 99.2 billion dollars, an increase of 5.6% from the previous year.

In addition to Corona 19 and Huawei sanctions, it ranked second after 2018 ($126.7 billion). Mobile demand was sluggish, but it made good progress as demand in the server and laptop fields increased due to the spread of the non-face-to-face economy.

In particular, system semiconductor exports recorded a record high of $30.3 billion, making it the fifth-largest export item beyond steel and petroleum products on an annual basis. This is due to the increased demand for foundry consignment and increased demand for products such as chips and image sensors for 5G communication.

Semiconductors are expected to serve as a strong support for the Korean economy this year.

According to global market research firms Omdia, Gartner, and the World Semiconductor Market Statistics Organization (WSTS), the global semiconductor market is expected to increase by 8.7% on average this year, of which the memory market will increase by 15.5%.

The export forecast of Korea’s semiconductors released by domestic organizations such as the Korea Trade Association and the Korea Development Bank is 17.5 billion to 11 billion dollars, an increase of 10.2% from last year, and is expected to exceed 100 billion dollars for the second time following 2018.

Memory is expected to increase by 12.0% from last year to $70.3 billion to $72.9 billion as exports, mainly for DRAM, increased by 7.0% to $31.8 billion to $33 billion.

An official from the Ministry of Industry said, “The market conditions are expected to improve as demand for downstream industries such as smartphones, servers, and PCs increases with the expansion of the 5G market and the confidence of a non-face-to-face economy.”

DRAM is expected to convert to excess demand from the beginning of the year and gradually expand, and NAND is expected to remain in excess supply and then convert to excess demand from the second half of the year.

In terms of facility investment in the semiconductor sector, Korea is expected to recapture the No. 1 position in facility investment, which was lost to China and Taiwan in 2019 after the semiconductor supercycle in 2017-18, in two years. According to the International Semiconductor Equipment and Materials Association (SEMI), Korea’s semiconductor facility investment this year is $18.9 billion, more than China ($16.8 billion) and Taiwan ($15.6 billion).

Samsung Electronics as of the end of December last year, reflecting market expectations for the semiconductor boom[005930]The market capitalization of the company rose to $500 million, surpassing Taiwan’s TSMC and regaining the top spot in global semiconductor market capitalization in five months.

Industry Minister Sung Yun-mo said, “This year, semiconductors will drive the recovery and exports of the Korean economy, including exports and investments, and will serve as a driving force for the acceleration of the Korean New Deal and digital transformation.” We will provide policy support so that we can leap into a comprehensive semiconductor powerhouse through the creation of an ecosystem.”

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