South Korea ' s semi-conductor industry is heavily dependent on the memory chip market, and as it shows signs of declining demand for core products for several months in a row, it is beginning to have a negative impact on the overall performance of the national economy. For the first time in more than four years, the production of semi-conductor components in South Korea has declined in an annual comparison, based on the August results.
According to Bloomberg, with reference to government statistics data from South Korea, in July the volume of semiconductor production was still 17.3% higher than in the same month of the previous year, and in August there was already a 1.7% decrease since January 2018; other specific indicators also indicate that demand for semiconductor components is declining, with signs of overproduction showing a 67.3% increase, and the volume of supplies from businesses dropped by 20.4% in August, and this is the second consecutive month.
It is clear that Korean producers have begun to reduce the volume of the production of semiconductor components, but this has not yet helped to reduce the stock supply, as demand has declined faster than the measures taken on the part of suppliers. The producer of the memory chip, Samsung Electronics, warned in the past month about the deterioration of the market situation in the second half of the year. IC Accounts estimates that between May and July the size of the market was halved by the operational memory chip. The position of Korean producers has been exacerbated by the depreciation of the national currency, which by this criterion has fallen only to Japanese yen.