[아이뉴스24 최상국 기자] This year, the Korean machinery industry is expected to rebound, centering on semiconductor equipment, overcoming the stagnation caused by Corona 19.
The Korea Institute of Machinery and Materials (President Park Sang-jin) under the Ministry of Science and Technology and Information and Communication reported on the 9th, in a report titled’Machine Industry 2020 Performance and 2021 Prospects’. It was estimated at ~110 trillion won.
Last year (2020), the domestic machinery industry production recorded 103 trillion won, a 1% decrease from the previous year due to the impact of Corona 19. Exports fell 7.1% to $57 billion and imports fell 15.7% to $41.8 billion, all of which fell.
It is expected that this year will show a recovery trend due to the base effect and the increase in demand amid the boom in downstream industries such as semiconductors.
According to the report, in 2021, the Korean machinery industry is expected to rebound more than 1% year-on-year, with both production, import and export growth. Major indices, such as machine orders and manufacturing PMI (Purchase Managers Index) in major countries, also show a rebound in the machinery industry in 2021, and the growth rate of production and exports has turned positive since September last year and has been on a continuous trend.
In addition, the supply of vaccines is expected to expand, and investments in infrastructure to boost the economy, starting with major countries, are expected to expand. However, the pace of growth is not expected to be significant, as global uncertainties such as rapid policy changes in major countries and the asymmetric economic shock caused by Corona 19 remain. Strategic responses are needed to factors that can hinder growth, such as protectionism, weak dollar, and deeper export dependence on China.
In this year’s machinery industry, it is especially noteworthy whether government policies such as carbon neutrality and the Korean version of the New Deal will lead the recovery. As semiconductor and display equipment show strong growth, it is expected to revitalize the machinery industry.
By industry, semiconductor equipment is expected to grow more than last year on the back of the uptrend in downstream industries, and the plant sector is also expected to grow YoY on increased orders amid a recovery in LNG demand.
It is also positive that the global semiconductor equipment market is expected to continue growing through 2022, centered on the growth of the foundry. The report suggested that the policy to secure the system semiconductor market should be continued in order to respond to the increase in demand from downstream industries caused by the megatrend of the semiconductor equipment market in the future.
The plant and construction machinery sectors are expected to stabilize. LNG liquefaction plant projects in China, Southeast Asia and Africa are expected to find opportunities, and the construction machinery sector is expected to rebound with the resumption of industrial activities and infrastructure investment to boost the economy.
The machine tool industry is expected to continue to stagnate. Last year, all demand sectors excluding electrical and electronics declined, and both domestic and export sales fell by about 20% for the second consecutive year. Asian countries will drive the recovery this year, but officials from major countries expect production to decline slightly in 2021.
Kim Hee-tae, a senior researcher at the Mechanical Technology Policy Center, said, “In 2020, the machinery industry remained strong despite the effects of Corona 19, contributing to the improvement of national competitiveness, and in 2021, improved performance compared to the previous year thanks to the increase in demand due to megatrends and government policies He said, “We need to make efforts to improve the dependence on trade with China and the trade balance between Japan and Japan.”
The full report can be downloaded from the Korea Institute of Machinery and Materials website.
Reporter Choi Sang-guk [email protected]