Semiconductors industry is playing an important role in Korean export industry, leading to economic recovery. However, there is growing concern that the increasingly heavily loaded semiconductors will be a burden on the recovery of the economy.

Experts predict that the semiconductor boom is expected to continue until the first half of the next year. However, it is possible that any number of variables may arise considering the characteristics of products that are sensitive to market conditions. It is a warning that the economy may be staggering due to the semiconductor industry.

Samsung Electronics and SK Hynix, two of the world`s top memory semiconductors, posted record-high earnings in the third quarter, according to industry sources. According to the Financial Supervisory Service on October 26, the operating profit of the two companies in the semiconductor business for the third quarter is only KRW 13 trillion. The semiconductor industry is showing signs of continuing to boost exports as well as economic recovery. According to the Bank of Korea (BOK) report, the third quarter gross domestic product (GDP) reached KRW 392.67 trillion, up 1.4 % from the second quarter. This is the highest since the second quarter of 2010 (1.7%). Exports soared 6.1%, leading to such economic growth.

The problem is that about one-fifth of the total exports are focused on semiconductors. The share of semiconductors in the total exports of the Ministry of Commerce, Industry and Energy has increased from 10.2 % in 2013 to 16.1 % this year.

The semiconductor industry is expected to remain robust until the first half of the next year in the semiconductor industry.

Park Sung-wook, vice chairman of SK Hynix, met with reporters at the Semiconductor Competition held at COEX in Samseong-dong on October 17 and he carefully diagnosed that it should be seen from the second half of the year, "until the first half of next year. Market researcher IHS Markets also predicted that the global DRAM market will peak at USD 74.1 billion next year, down from USD 62.3 billion in 2019 and USD 57.7 billion in 2020.

Therefore, there is a warning that if the semiconductor industry cannot provide the next growth engine, it will not be able to promise the economy after next year.

In fact, the number of DRAM makers, which had reached 20 locations in 1995, has been reorganized into big 3 systems such as Samsung Electronics, SK Hynix and Micron that have survived two chicken games. In the semiconductor industry, there is a voice calling for strengthening competitiveness not only for memory semiconductors but also for the entire ecosystem, such as fabless parts and equipment.

As a result, companies that are planning business plans for the coming year are also becoming cautious. We believe the economic upturn could be broken by next year. It is also pointed out that the government needs to eliminate anti-corporate sentiment in order for companies to find new growth engines. We have already reached a global level, but the political environment cannot keep up with it," a business official said. "If the government takes the burden of shackles and jobs, it will be a bad thing for the economy as well as for the economic recession."


By Park Jung Il comja77@


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