[News] Surging Demand from China’s Trade-In Policy Reportedly Revitalizes South Korean Foundries

According to Commercial Times, citing Business Korea, the Chinese government has introduced a “trade-in” policy to stimulate domestic consumption, offering subsidies to consumers purchasing electronic products. The report points out that since the beginning of 2025, sales of electronic devices in China have grown significantly, which has in turn benefited the semiconductor industry, particularly boosting orders for South Korean foundries.

As noted by the report, South Korean foundry DB HiTek has benefited from China’s “trade-in” policy, with its Bucheon plant’s production capacity now fully restored. At the same time, the report also notes that the combined utilization rate of its Bucheon and Sangwoo plants has reached nearly 85%, an increase of almost 10 percentage points compared to 74.4% in the third quarter of 2024.

As the report indicates, amid the order surge, DB HiTek expects its annual operating rate in 2025 to remain at a mid-to-high level of over 85%.

The report points out that the recovery in DB HiTek’s utilization rate is a sign of the semiconductor market rebounding, indicating a gradual recovery from the downturn in 2024. In 2022, DB HiTek’s operating profit fell by 26.52%, totaling approximately 195 billion KRW.

China’s trade-in policy has also benefited other South Korean semiconductor manufacturers. SK Key Foundry, featuring 8-inch fabs, has seen its utilization rate exceed 80%.

The report highlights, citing sources, that orders from fabless companies in the U.S. and Europe are on the rise. These companies supply semiconductor components to China, which in turn is driving the recovery of foundries’ utilization rates.

Meanwhile, another major foundry in South Korea is also showing signs of recovery. According to a report from The Chosun Daily, Samsung Electronics’ foundry division has restarted operations following a temporary production halt and plans to fully ramp up its Pyeongtaek fab by June. This move is driven by increasing demand for Exynos processors and a rise in orders from cryptocurrency mining firms in China, as the report points out.

Read more

• [News] China’s 2025 Trade-In Program Fuels Local Smartphone Sales, Leaving Apple at a Disadvantage
• [News] Samsung Reportedly to Ramp up Foundry Production as 4nm Orders from Exynos and China Surge

(Photo credit: DB HiTek)