South Korea Semiconductor Market Assessment, By Type [Intrinsic, Extrinsic], By Components [Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU Sensors, Others],  By Node Size [180 nm, 130 nm, 90 nm, 65 nm, 45/40 nm, 32/28 nm, 22/20 nm, 16/14 nm, 10/7 nm, 7/5 nm, 5nm], By End-user [Networking and Communications, Consumer Electronics, Automotive, Data Processing, Aerospace, Medical, Military and Defense, Others], By Region, Opportunities and Forecast, 2017-2031F

South Korea semiconductor market is set to witness growth at a CAGR of 6.50% during the forecast period 2024-2031, reaching USD 134.19 billion by 2031 from USD 81.08 billion in 2023.

South Korea Semiconductor Market Size, Growth, Report 2031

South Korea semiconductor market&nbsp;is set to witness growth at a&nbsp;CAGR of 6.50%&nbsp;during the forecast period 2024-2031, reaching&nbsp;USD 134.19 billion&nbsp;by 2031 from&nbsp;USD 81.08 billion&nbsp;in 2023. The semiconductor business of South Korea is expanding due to the rise in semiconductor manufacturing, growing exponentially year-on-year. The increase is mainly caused by high local demand for electronics and international exports, especially for memory chips. For instance, in July 2024, the Observatory of Economic Complexity declared that South Korea exported most of its semiconductors to Vietnam at USD 83.60 million, China at USD 60.10 million, Philippines at USD 19.6 million, and Japan at USD 18.20 million.
Government programs and investments further support the sector. South Korea is home to significant semiconductor manufacturing companies, such as Samsung and SK Hynix, which spearhead the industry's expansion and advancement.
<h2 style="text-align: justify;">Advanced Semiconductor Chip Packaging is Fueling the Market Growth&nbsp;</h2>
Success within the semiconductor market will inevitably be bound with advanced semiconductor chip packaging, as it upgrades performance, power efficiency, and device shrinking. Advanced techniques of packaging have overcome the limits of the older methods by packing several chips into one package to perform fast data processing at lower cost. With the inclusion of new technologies, such as AI, IoT, and 5G, this could prove to be a critical breakthrough in meeting future expectations and keeping semiconductor manufacturers competitive through offering higher performance and wattage in high-performance solutions.&nbsp;
For instance, in March 2024, Samsung Electronics announced that its advanced chip packaging line would reach over USD 100 million in sales. The division was established as a separate business last year to take advantage of the surging market demand for high-performance processors in applications involving artificial intelligence. According to the company's chief executive officer, the company is hopeful that the investment will generate substantial returns for the second half of the year, so as to increase Samsung's market share and profitability in semiconductor market.
<h2 style="text-align: justify;">Utilization of Advanced Technology in Opto-semiconductors to Proliferate Market Growth</h2>
In general, the electronics sector in South Korea relies on highly advanced technologies for opto-semiconductors. Investments in leading-edge technologies, such as EUV, are necessary to make finer and more efficient parts while the country concentrates on enhancing its semiconductor capabilities. Furthermore, technological advancements are supporting an increase in demand within all industries for high-performance semiconductors in consumer electronics to the automobile industry. South Korea market has emerged due to the commitment of key players towards innovation and strategic investments in the global semiconductor market.
For instance, in April 2024, Seoul Semiconductor Co., Ltd., a South Korean company with the best opto-semiconductors in the world, delved into mass production of the world's finest opto-semiconductor technology, the first high-power LEDs without wire called WICOP, for use in the headlights of the Genesis GV80 luxury SUV model made by Hyundai Motor Group, one of the top three automakers in the world. The function bases all its functionalities on all the features in the smart headlights of GV80.
<h2 style="text-align: justify;">Investment in R&amp;D is Fueling the Market Growth Significantly</h2>
South Korea is propelling its growth in the semiconductor market in 2024 by making significant expenditures in research and development. The government intends to spend a hefty amount&nbsp;with an emphasis on cutting-edge technology, to improve the semiconductor ecosystem. The goal of government investment is to increase South Korea's competitive advantage in the international semiconductor market, which is essential to the country's economic growth.
For instance, in July 2024, South Korean government announced that approx. South Korea will invest USD 200 million in a state-run research and development initiative centered on semiconductor packaging technologies. The production of high-performance, low-power processors required for AI&nbsp;applications depends on this expenditure. This project supports South Korea's overall plan to boost its semiconductor industry and intends to increase the country's competitive advantage in the global semiconductor market, especially in the fast-growing AI sector, as the demand for sophisticated semiconductor solutions rises.
<h2 style="text-align: justify;">Government Initiatives Acting as a Catalyst</h2>
In the face of intense competition across the world, the South Korean government is taking important steps to support its semiconductor sector. Through the promotion of industry-academia collaboration, the government aims to establish a strong semiconductor ecosystem and guarantee sustained growth in&nbsp; vital industry. Moreover, the stringent policies passed by the govt are propelling the market growth rate significantly.
For instance, in January 2024, the South Korean government revealed a cooperative plan among the&nbsp;ministries to establish a mega semiconductor cluster. This project will build three research and teaching facilities in Pangyo, Suwon, and Pyeongtaek with the goal of creating the largest and most sophisticated semiconductor hub in the world. Achieving 50% supply chain independence and taking 10% of the worldwide system semiconductor market are the primary objectives of the project. By combining fabless businesses, manufacturing hubs, suppliers of raw materials, and cutting-edge research institutes, the cluster will establish South Korea as a global leader in the production of memory semiconductors with advanced features.
<a href="https://www.marketsandata.com/industry-reports/south-korea-semiconductor-market/sample-request">Download Free Sample Report</a>
<h2 style="text-align: justify;">Northwestern Region to Dominate the Market Share</h2>
Northwest South Korea, namely Gyeonggi-do, leads the semiconductor market due to the presence of major manufacturers, such as Samsung Electronics and SK Hynix, that dominate the global market. The region benefits from significant government expenditures in semiconductor clusters, which improve production capacities.
Furthermore, Gyeonggi-do's strategic location and&nbsp;infrastructure support attracting the global semiconductor manufacturers, reinforcing its position as a major player in the market. This emphasis on innovation and capacity expansion is critical to remain competitive for the increased global demand for sophisticated semiconductor technologies.
Future Market Scenario (2024 &ndash; 2031F)
1.&nbsp;To improve competitiveness, the South Korean government wants to create a K-Semiconductor belt which will group suppliers, manufacturers, and chip designers, encouraging the localization of equipment and materials.
2.&nbsp;Gyeonggi province is planning to build a massive semiconductor cluster by 2042. This project is expected to draw private investments and create high-tech factories that are expected to provide job opportunities along with market growth.
3.&nbsp;The government of South Korea is putting in place numerous measures, including tax breaks and research and development assistance, to fortify the semiconductor industry and boost its competitiveness internationally. This will, in turn, present many prospects for expansion in the forecast years.
Report Scope
&ldquo;South Korea Semiconductor Market Assessment, Opportunities and Forecast, 2017-2031F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of South Korea semiconductor market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
<table>
<tbody>
<tr>
<td width="301">
Report Attribute
</td>
<td width="301">
Details
</td>
</tr>
<tr>
<td width="301">
Base Year of the Analysis
</td>
<td width="301">
2023
</td>
</tr>
<tr>
<td width="301">
Historical Period
</td>
<td width="301">
2017-2022
</td>
</tr>
<tr>
<td width="301">
Forecast Period
</td>
<td width="301">
2024-2031
</td>
</tr>
<tr>
<td width="301">
Projected Growth Rate
</td>
<td width="301">
CAGR of 6.50% between 2024 and 2031
</td>
</tr>
<tr>
<td width="301">
Revenue Forecast in 2031
</td>
<td width="301">
USD 134.19 billion
</td>
</tr>
<tr>
<td width="301">
Segments Covered
</td>
<td width="301">
Type, Components, Node Size, End-user
</td>
</tr>
<tr>
<td width="0">
Regions Covered
</td>
<td width="0">
North Chungcheong, South Chungcheong, Gangwon, North Gyeongsang, Gyeonggi, South Gyeongsang, Jeju, North Jeolla, South Jeolla
</td>
</tr>
<tr>
<td width="301">
Key Companies Profile
</td>
<td width="301">
Samsung Electronics Co. Ltd., NXP Semiconductors NV, SK Hynix Inc., DB HiTek Co., Ltd., Hanmi Semiconductor Co., Ltd., Magnachip Semiconductor Corp., Jeju Semiconductor, Broadcom Inc., Optowell Co., Ltd., ITM Semiconductor Co., Ltd.
</td>
</tr>
<tr>
<td width="301">
Customization Scope
</td>
<td width="301">
15% free report customization with purchase
</td>
</tr>
<tr>
<td width="301">
Pricing and Purchase Options
</td>
<td width="301">
Avail the customized purchase options to fulfill your precise research needs
</td>
</tr>
<tr>
<td width="301">
Delivery Format
</td>
<td width="301">
PDF and Excel through email (subject to the license purchased)
</td>
</tr>
</tbody>
</table>
In the report,&nbsp;South Korea semiconductor market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Type
<ul>
<li>Intrinsic</li>
<li>Extrinsic</li>
</ul>
</li>
<li>By Components
<ul>
<li>Memory Devices</li>
<li>Logic Devices</li>
<li>Analog IC</li>
<li>MPU</li>
<li>Discrete Power Devices</li>
<li>MCU Sensors</li>
<li>Others</li>
</ul>
</li>
<li>By Node Size
<ul>
<li>180 nm</li>
<li>130 nm</li>
<li>90 nm</li>
<li>65 nm</li>
<li>45/40 nm</li>
<li>32/28 nm</li>
<li>22/20 nm</li>
<li>16/14 nm</li>
<li>10/7 nm</li>
<li>7/5 nm</li>
<li>5nm</li>
</ul>
</li>
<li>By End-user
<ul>
<li>Networking and Communications</li>
<li>Consumer Electronics</li>
<li>Automotive</li>
<li>Data Processing</li>
<li>Aerospace</li>
<li>Medical</li>
<li>Military and Defense</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>North Chungcheong</li>
<li>South Chungcheong</li>
<li>North Gyeongsang</li>
<li>Gangwon</li>
<li>Gyeonggi</li>
<li>South Gyeongsang</li>
<li>North Jeolla</li>
<li>South Jeolla</li>
<li>Jeju</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
To maintain long-term development and competitiveness in the global semiconductor market, South Korea wants to increase its impact on non-memory industries and AI chips, while substantial companies, such as Samsung and SK Hynix, are leaders in the memory chip market.
In July 2024, SK Hynix intended to invest around USD 6.8 billion to develop a semiconductor facility in South Korea's Yongin Semiconductor Cluster. Construction is scheduled to commence in March 2025, with its&nbsp;completion projected in May 2027. This facility seeks to improve production capacities for next-generation (NG)&nbsp;memory chips in response to increased demand, especially in the case of AI technologies.
Key Players Operating in South Korea Semiconductor Market are:
<ul style="text-align: justify;">
<li>Samsung Electronics Co. Ltd.,</li>
<li>NXP Semiconductors NV</li>
<li>SK Hynix Inc.</li>
<li>DB HiTek Co., Ltd.</li>
<li>Hanmi Semiconductor Co., Ltd.</li>
<li>Magnachip Semiconductor Corp.</li>
<li>Jeju Semiconductor</li>
<li>Broadcom Inc.</li>
<li>Optowell Co., Ltd.</li>
<li>ITM Semiconductor Co., Ltd.</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
If you can't find what you're searching for or have any custom requirements for South Korea Semiconductor market, you may approach our team at&nbsp;<a href="mailto:info@marketsandata.com">info@marketsandata.com</a>.

South Korea Semiconductor Market Assessment, Opportunities and Forecast, 2017-2031F

South Korea semiconductor market is expected to experience growth due to utilization of highly advanced technology in opto-semiconductors, investment in R&D, and increasing demand from other Asian countries.

FAQs

Industry Reports

Blogs

Case Studies

Industry News

Press Release

Infographics