South Korea Semiconductor Market Report and Forecast 2024-2032

South Korea Semiconductor Market Size

The South Korea semiconductor market reached around USD 115.69 billion in 2023. The market is projected to grow at a CAGR of 7.9% between 2024 and 2032, reaching almost USD 230.40 billion by 2032.

South Korea Semiconductor Market Outlook

• In February 2024, South Korea witnessed a 65.3% surge in semiconductor production, the highest since late 2009.

• South Korea accounts for 60% of the global production of NAND and DRAM memory chips.

• Major market players seek to boost wafer production capabilities to overtake TSMC and strengthen domestic supply chains.

South Korea Semiconductor Market Growth

South Korea exported $129 billion of semiconductor goods in 2022, which constituted nearly 19% of its overall exports. As the United States and China bolster their investment plans and revise their legal frameworks for semiconductor production, South Korea is expected to introduce various initiatives to increase the competitiveness of the market. This includes an investment worth $470 billion for establishing the world’s largest mega cluster for semiconductors, in partnership with SK Hynix and Samsung Electronics. Spread across an area of 52,000 acres, this facility is expected to consist of several R&D and production facilities for semiconductors.

Increasing production of AI chips is expected to emerge as one of the key market trends. Emerging technologies such as generative AI are likely to propel the demand for system semiconductors in South Korea. To boost its global competitiveness, South Korea is making investments worth $6.8 billion by 2027 to expand its production capabilities and overcome its technological inefficiencies when compared with American and Chinese semiconductor chips. South Korean chips’ technology level lags behind American chips, accounting for only 86.0% of the 100% efficiency provided by the latter. Hence, technological advancements are likely to bolster the market in the coming years.

South Korea Semiconductor Industry Segmentation

South Korea Semiconductor Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Memory Devices

• Logic Devices

• Analogue IC

• OSD

• Micro-Component

Market Breakup by Application

• Automotive

• Industrial

• Data Centre

• Telecommunication

• Consumer Electronics

• Aerospace and Defence

• Healthcare

• Others

South Korea Semiconductor Market Share

Based on application, the market is categorised into automotive, industrial, data centre, telecommunication, consumer electronics, aerospace and defence, and healthcare, among others. Industrial application of semiconductors is expected to dominate the market in the forecast period as South Korea strives to become a leading country for advanced technology and tries to bridge the gap existing between its technology level with those of countries like the USA and China.

Leading Companies in the South Korea Semiconductor Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers and acquisitions, investments, and capacity expansion.

• Samsung Electronics Co., Ltd.

• SK HYNIX INC.

• DB HITEK

• Magnachip Semiconductor Corporation

• LS ELECTRONIS

• Others

Major players in the market are engaging in research and development activities to drive advancements and innovations in semiconductor technology.

Key Highlights of the Report