South Korea's Semiconductor Surge: Samsung and SK Hynix Shatter Records with Unprecedented Production and Shipment Growth

Samsung Electronics Co SSNLF and the broader South Korean semiconductor industry have grown substantially, marking a significant rebound in production and shipments. 

In November, chip production surged by 42% compared to the previous year, the highest increase since early 2017. Simultaneously, shipments experienced an 80% rise, the most significant gain since late 2002, as the National Statistical Office reported. 

This growth represents the most minor inventory expansion since February, with a 36% increase, Bloomberg reports.

Also Read: US's Domestic Semiconductor Ambitions Take a Hit as Samsung Shelves Production Plans

These figures indicate a robust recovery from a slump that had impacted South Korea's economy for over a year, signaling positive developments for major chipmakers like Samsung and SK Hynix Inc. 

This resurgence is part of a broader revival in global tech demand. Samsung is a key Nvidia Corp NVDA supplier.

Despite facing challenges in 2023, such as lower semiconductor demand, higher interest rates, economic slowdown in China, and geopolitical risks, South Korea's trade-dependent economy is improving. 

The central bank projected a 1.4% growth for the year, a decrease from the previous year's 2.6%. 

However, the recent surge in semiconductor production and shipments has contributed to a better-than-expected 5.3% increase in the country's industrial output in November, with high-performance semiconductors driving this growth.

The Bank of Korea anticipates a 2.2% economic expansion in the next year, supported by strengthening exports. 

This optimism is fueled by recovering memory chip prices and rising demand driven by emerging technologies like artificial intelligence. 

Despite potential global economic slowdowns and challenges in China and the US, there is an expectation for increased industrial production as global demand for South Korean products grows, and domestic challenges like high inflation and interest rates start to diminish.

Also Read: How Apple and Nvidia Could Boost Samsung's Financial Landscape?

Disclaimer: This content was partially produced with the help of A.I. tools and was reviewed and published by Benzinga editors.

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