South Korean chip exports to Taiwan surge amid supply chain shifts
South Korea's Semiconductor Export Boom
Significant Growth in Taiwan and Vietnam
In 2024, South Korea saw a remarkable increase in its semiconductor exports to Taiwan and Vietnam, marking a shift in global supply chain dynamics. According to South Korea's Ministry of Trade, Industry and Energy, the country's semiconductor exports reached a record USD 141.9 billion, surpassing the previous high of USD 129.2 billion in 2022.
Changing Export Shares
From January to November 2024, China's share of South Korea's chip exports decreased to 51.7%, down from 61.1% in 2020. Meanwhile, Taiwan's share rose from 6.4% in 2020 to 14.5% in 2024. This growth is linked to the trade of advanced high-bandwidth memory (HBM) chips, with SK Hynix supplying these to TSMC for integration into GPUs for Nvidia.
Vietnam's Rising Share
Similarly, exports to Vietnam increased from 11.6% in 2020 to 12.9% in 2024, driven by companies like Samsung moving smartphone production from China to Vietnam.
Impact of Global Policies
Kim Yang-paeng from the Korea Institute of Industrial Economics and Trade noted that the "America First" policy could reshape the global semiconductor supply chain, encouraging US allies to align in the trade war with China.
Doubts Revealed
Semiconductor
Semiconductors are tiny materials used in electronic devices like computers and smartphones. They help control electricity and are essential for making gadgets work.
Exports
Exports are goods or services that a country sells to other countries. When South Korea sends its semiconductors to Taiwan and Vietnam, it is called exporting.
Taiwan
Taiwan is an island country in East Asia, near China. It is known for its technology industry, especially in making electronic parts.
Vietnam
Vietnam is a country in Southeast Asia. It is becoming an important place for making and assembling electronic products.
Global supply chains
Global supply chains are networks that involve the production and distribution of goods across different countries. They help in making and delivering products worldwide.
USD 141.9 billion
USD 141.9 billion is a huge amount of money, measured in US dollars. It shows how much South Korea earned from selling semiconductors to other countries.
Samsung
Samsung is a big company from South Korea that makes electronics like phones, TVs, and semiconductors. It is one of the world's leading technology companies.
Kim Yang-paeng
Kim Yang-paeng is likely an expert or analyst who provides insights on the semiconductor market and global trade policies.
"America First" policy
The "America First" policy is a strategy by the US to prioritize its own economic interests. It can affect how countries trade with each other, especially in technology sectors.
US allies
US allies are countries that have friendly relations with the United States. They often work together on international issues, including trade and security.
China's dominance
China's dominance refers to its strong position in the global market, especially in manufacturing and technology. Other countries sometimes try to balance this by strengthening their own industries.
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