[News] South Korea’s Chip Exports to Taiwan and Vietnam Rise in 2024 as China’s Share Falls

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According to a report from Central News Agency, citing Korea JoongAng Daily, South Korea’s share of chip exports to China has declined, while exports to Taiwan and Vietnam have increased. This trend could be attributed to factors such as the intensifying U.S.-China chip war, rising semiconductor demand from leading U.S. AI companies, and global IT firms relocating their production facilities outside of China.

As stated in the report, the South Korean Ministry of Trade, Industry, and Energy (MOTIE) announced on January 1 that South Korea’s semiconductor exports reached a record-high USD 141.9 billion in 2024, surpassing the previous peak of USD 129.2 billion in 2022.

The report also highlights that from January to November 2024, China and Hong Kong accounted for 51.7% of South Korea’s total chip exports, a decrease from 61.1% in 2020.

Conversely, the share of South Korea’s chip exports to Taiwan grew significantly, increasing from 6.4% in 2020 to 14.5% during the same period in 2024. This growth is primarily attributed to SK hynix’s collaboration with TSMC to supply more HBM to NVIDIA. The report highlights that a substantial portion of SK hynix’s HBM shipments were recorded as sales to Taiwan, home to foundries that serve major U.S. AI companies like NVIDIA.

With regard to exports to the U.S., from January to November 2024, the U.S. accounted for 7.2% of South Korea’s total chip exports, showing little change compared to 7.5% in 2020, as the report notes.

Additionally, the report highlights that the proportion of South Korean chip exports to Vietnam increased from 11.6% in 2020 to 12.9% during the January-November 2024 period. The report indicates that this growth is largely attributed to Samsung Electronics shifting part of its production facilities from China to Vietnam.

Furthermore, as cited by Korea JoongAng Daily, the Korea International Trade Association’s Export Business Survey Index, released in December 2024, suggested that South Korea’s chip exports could encounter difficulties in the first quarter of 2025 due to increased DRAM exports from Chinese competitors.

Read more

• [News] South Korean Semiconductor Giants Shift Investments from China to Vietnam Amid U.S. Sanctions
• [News] NVIDIA CEO Jensen Huang Reportedly Asked SK hynix to Expedite HBM4 Supply by 6 Months

(Photo credit: SK hynix)