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The semiconductor industry in South Korea has seen a remarkable surge in production, reaching its highest level in 14 years as of February 2024. This significant recovery is a positive sign for one of the country’s most important sectors.

According to official data from South Korea, semiconductor output has increased by 65.3% compared to the same period last year, marking the strongest growth since 2009. Additionally, semiconductor product sales have also surged by 59% in February, a surprising reversal from the 62.7% decline seen in January 2024.

Furthermore, the semiconductor industry’s inventory ratio has decreased to 16.2%, indicating a strong market demand and a second consecutive month of recovery. This news is particularly encouraging as the semiconductor sector plays a crucial role in South Korea’s export industry.

Even some experts believe that the results could have been even better if the Lunar New Year holidays had occurred in January instead of February 2024, potentially impacting production activities.

Predictions indicate that the semiconductor industry is likely to continue growing in March 2024, as chip exports have already increased by 46.5% in the first 20 days of the month compared to the same period last year.

The main driver behind this growth is the race in artificial intelligence technology. SK Hynix, the second-largest memory chip manufacturer in South Korea, is currently a supplier for the renowned Nvidia brand in this field.

According to Bloomberg, the unexpected growth in the semiconductor industry has boosted the confidence of the South Korean central bank in maintaining tight monetary policies to combat current inflation concerns.

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