South Korea's semiconductor production grew by the most in 14 years

Semiconductor production in the Republic of Korea has begun to grow rapidly, signalling a recovery in the country's most important industrial sector.

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Recently, the national statistics agency released data showing that production rebounded by 65.3% from a year earlier. This is the largest increase since the end of 2009. Semiconductor shipments also rose by 59%, although they were down from 62.7% in January. Inventories fell by 16.2%, another sign of strong demand.

The report indicates that the expansion of industrial production was greater than experts had expected, which means that the domestic economy has a strong impetus, as conductors account for the largest share of South Korea's exports.

It is noted that the growth will continue in the chip industry, as evidenced by an increase in chip exports by 46.5%. The second largest chipmaker in the country, SK Hynix Inc. predicts continued positive dynamics in its supplies, in particular to Nvidia Corp.

It is worth noting that the memory chip market, which is the backbone of South Korea's semiconductor industry, is known for its cycle of sharp ups and downs.

Source: Bloomberg