Semiconductors - South Korea

South Korea

Revenue in the Semiconductors market is projected to reach US$19.30bn in 2024.
Integrated Circuits dominates the market with a projected market volume of US$15.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.41%, resulting in a market volume of US$28.90bn by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

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Market

Region

Region comparison

Currency

Analyst Opinion

South Korea has emerged as a global leader in the Semiconductors market, with a strong presence in the production and export of semiconductor devices.

Customer preferences: South Korean customers have shown a strong preference for high-quality and technologically advanced semiconductor products. They value reliability, performance, and energy efficiency in their electronic devices. Additionally, there is a growing demand for semiconductors used in emerging technologies such as artificial intelligence, Internet of Things, and autonomous vehicles.

Trends in the market: One of the key trends in the South Korean Semiconductors market is the increasing demand for memory chips, particularly NAND and DRAM. These chips are essential components in smartphones, tablets, and other electronic devices. The demand for memory chips is driven by the growing adoption of cloud computing, data centers, and mobile devices. Another trend in the market is the focus on research and development of advanced semiconductor technologies. South Korean companies are investing heavily in developing next-generation semiconductors, such as 5G chips and AI processors. This reflects the country's commitment to innovation and staying ahead in the global semiconductor industry.

Local special circumstances: South Korea benefits from a strong semiconductor ecosystem that includes major players like Samsung Electronics and SK Hynix. These companies have established themselves as global leaders in semiconductor manufacturing and have a significant market share. The presence of these industry giants has created a competitive environment that drives innovation and technological advancements in the market. Furthermore, South Korea has a well-developed infrastructure and a skilled workforce in the semiconductor industry. The country's emphasis on education and research has contributed to the availability of highly skilled engineers and scientists who can support the development and production of semiconductors.

Underlying macroeconomic factors: The growth of the Semiconductors market in South Korea is also influenced by macroeconomic factors. The country has a stable economy and a favorable business environment, which attracts both domestic and foreign investments. Additionally, South Korea has established free trade agreements with several countries, which facilitates the export of semiconductor products to global markets. Furthermore, the government of South Korea has implemented policies to support the semiconductor industry, including tax incentives, research grants, and infrastructure development. These initiatives aim to foster innovation, promote domestic production, and enhance the competitiveness of South Korean semiconductor companies in the global market. In conclusion, the Semiconductors market in South Korea is experiencing significant growth due to customer preferences for high-quality and technologically advanced products, the increasing demand for memory chips, the focus on research and development of advanced semiconductor technologies, the presence of major industry players, a well-developed infrastructure, and favorable macroeconomic factors.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.