Industry News

South Korea's Chip Output Hits the Biggest Drop since the Global Financial Crisis

Update time : 2023-01-06 10:19:42

According to industry information data, last month's decline in South Korea's semiconductor output hit the largest drop since the global financial crisis, directly hitting South Korea's industrial output hard; it also shows that with the world economy slowing down, global demand for technology components has cooled further.

According to data released by Statistics Korea, November was the fourth consecutive month of decline in chip production, down about 15% compared to the same month last year, making it the largest decline since 2009, and the overall industrial production contracted 3.7% compared to the same period last year, also becoming the largest decline since the epidemic.
The decline in all types of economy-related industrial activity indicates that South Korea's recovery is losing momentum, with the country's economic growth already under pressure from falling exports and rising domestic interest rates, with worries exacerbated by sluggish global markets and dull potential.
As the Federal Reserve leads a wave of monetary tightening to combat the effects of inflationary geopolitics, the likelihood of major overseas economies, including the U.S., falling into recession is rising. While the opening of the Chinese epidemic suggests the market is recovering, a short-term epidemic could complicate the near-term picture.
In a statement, South Korea's finance ministry said weak chip demand adds to a range of factors that make South Korea's economic outlook more uncertain, including the impact of the recently concluded truckers' strike and the crowded tragedy in Seoul.
Facing economic embarrassment has made the Bank of Korea, which has been raising interest rates for more than a year and is discussing whether to raise rates once or twice more next year, more cautious as it considers ending the tightening cycle.
Chip production also fell 11% from a year earlier, while semiconductor inventories rose 20% in November from a year earlier, up from 12.9% the previous month, according to Statistics Korea. Inventories have been growing in double digits since October 2021, highlighting the global oversupply of memory chips.

Previous : Tesla's Shanghai Plant to Continue Production Cuts in January 2023

Next : Samsung Electronics to focus on automotive chips, aiming to become the top automotive semiconductor player by 2025

How many chips does a car need?

Sep .19.2024

Automotive chips can be divided into four types according to their functions: control (MCU and AI chips), power, sensors, and others (such as memory). The market is monopolized by international giants. The automotive chips people often talk about refer to

Position and Function of Main Automotive Sensors

Sep .18.2024

The function of the air flow sensor is to convert the amount of air inhaled into the engine into an electrical signal and provide it to the electronic control unit (ECU). It is the main basis for determining the basic fuel injection volume. Vane type: The

Chip: The increasingly intelligent electronic brain

Sep .14.2024

In this era of rapid technological development, we often marvel at how mobile phones can run various application software smoothly, how online classes can be free of lag and achieve zero latency, and how the functions of electronic devices are becoming mo

LDA100 Optocoupler: Outstanding Performance, Wide Applications

Sep .13.2024

In terms of characteristics, LDA100 is outstanding. It offers AC and DC input versions for optional selection, enabling it to work stably in different power supply environments. The small 6-pin DIP package not only saves space but also facilitates install

About Us

About Us What we do Quality People

Products

CHIP/IC Active devices Passive device Components OTHER

China electronic components supplier----Wah Luen Shing Electronic.----www.wlschip.com

Leave a message