"System Semiconductor Demand Expands"
[Asia Economy Reporter Moon Chaeseok] ICT exports increased last month for the first time in three months. After two consecutive months of decline, there was a reversal, but semiconductor exports slightly decreased.
On the 13th, the Ministry of Trade, Industry and Energy announced that last month's ICT export value was provisionally estimated at $14.96 billion, a 1% increase compared to the same period last year.
Korea's ICT exports were negative for two months starting from April, when the novel coronavirus infection (COVID-19) expanded into a global pandemic.
Semiconductors, the largest ICT export item accounting for 56% of total exports, recorded $8.36 billion, down 0.5% from the same period last year. After recovering from the poor performance in April (-15.1%), it increased by 6.5% in May but then declined again.
Memory semiconductors decreased by 2% to $5.77 billion, while system semiconductors increased by 6.8% to $2.14 billion.
Demand for memory semiconductors slightly decreased due to base effects and other factors.
System semiconductors saw increased performance due to continued expansion in foundry (contract manufacturing) and fabless (design) demand.
According to market research firm TrendForce, Samsung Electronics' foundry market share in the second quarter was 18.8%. Taiwan's TSMC, ranked first, held 51.5%.
Besides semiconductors, the other two major ICT export items, displays and mobile phones, both showed sluggish performance.
Display exports were $1.5 billion, down 5.2% compared to the same month last year.
As the LCD panel process shifted toward organic light-emitting diode (OLED), LCD exports decreased while OLED panel demand increased.
Last month's OLED panel exports increased by 13.4% year-on-year to $690 million, breaking the poor performance of -25.2% in April and -4.1% in May.
Mobile phone exports were $880 million, down 10.6% from the same period last year. Globally, demand for finished products and parts continued to decline.
Finished products saw sluggish sales of premium smartphones due to global demand decline, falling 24.4% year-on-year to only $370 million.
Mobile phone parts, however, increased by 2.8% during the same period to $520 million.
However, computers and peripherals recorded $1.27 billion, an 84.5% increase year-on-year, leading the export turnaround in June. Exports in this sector showed an increase for nine consecutive months.
Auxiliary storage devices (such as solid-state drives, SSDs) continued their strong export trend, increasing by 152.2% year-on-year to $970 million.
Looking at regional performance, exports to China (including Hong Kong) were $7.28 billion, down 1.6% year-on-year.
China is Korea's largest ICT export country, accounting for 49% of the total.
Exports to Vietnam, which accounts for 14% of the total, increased by 5.7% to $2.13 billion, and exports to the United States, which accounts for 13%, increased by 26% to $1.94 billion.
In May, exports to the United States were $1.74 billion, surpassing Vietnam's $1.71 billion, but the ranking changed again last month.
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