The manufacturing of semiconductors was one of South Korea’s major economic industries. Initially introduced by the foreign direct investment of U.S. companies in the mid-1960s, South Korea was able to leverage its cheap workforce for the labor-intensive process of manufacturing semiconductors. Domestic companies began investing in their own semiconductor production in the 1980s. Since then, Samsung Electronics and SK Hynix survived through the years and have placed themselves among the leading semiconductor manufacturers worldwide.
Design and/or manufacturing
Semiconductor companies can be largely categorized into three different types: Integrated Device Manufacturers (IDM), fabless, and foundry companies. IDMs are companies that are responsible for all semiconductor manufacturing processes from design to production. Fabless companies produce their own designs for semiconductors but do not own any production facilities. The actual production, or fabrication of semiconductors is outsourced to foundry companies, which in turn focus on the manufacturing process rather than strategic processes like design. Both Samsung Electronics and SK Hynix are IDMs, while DB HiTek is a notable South Korean foundry company.
Semiconductors were used for many modern applications, and the COVID-19 pandemic accelerated the demand for products that required them due to a paradigm shift towards remote work and minimizing face-to-face contact among workers. In these circumstances, South Korea expected a ‘super-cycle’ for its semiconductor industry, in which demand was predicted to boom and bring positive business to involved companies in the near future. Nevertheless, Korean companies face stiff competition from more than capable competitors from the U.S. and China. The continued investments made by China and the pursuit of U.S. companies will pose quite the challenge for South Korean semiconductor manufacturers moving forward.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
In the following 5 chapters, you will quickly find the 25 most important statistics relating to "Semiconductor industry in South Korea".