Samjong KPMG "Global Semiconductor Market to Approach Approximately 900 Trillion This Year"

The global semiconductor market size is projected to grow by 19% compared to the previous year, reaching approximately $626.9 billion (about 900 trillion KRW) this year. On the 17th, Samjong KPMG revealed this in its report titled ‘Six Major Issues and Response Strategies in the Semiconductor Industry.’

The semiconductor markets in the Americas and Asia-Pacific regions, which showed a downward trend last year, are expected to shift to rapid growth starting this year. The report presented six major issues in the semiconductor industry and pointed out that innovation factors such as AI, power semiconductors, and advanced packaging technologies will lead industry growth.

In particular, memory semiconductors are acting as a key driver of market growth. This year, memory semiconductors are leading the semiconductor market growth with a high growth rate of 81% compared to the previous year. Next year, the expansion centered on IC (integrated circuits) is expected to be prominent in the semiconductor market as well.

The situation of the Korean semiconductor market is also positive. The report stated that although Korea’s semiconductor exports decreased compared to the previous year due to global supply chain instability and the economic slowdown in China, the largest export destination, exports rebounded in the first half of this year with a 52.2% increase compared to the same period last year.

Memory semiconductor exports showed a growth rate of 78.9% during the same period, indicating that the domestic semiconductor industry is recovering centered on new growth engines such as AI (artificial intelligence) semiconductors.

The intensification of US-China conflicts and the strengthening of protectionism are expanding uncertainties in the global semiconductor supply chain. With the re-election of US President Trump, who has announced a strong protectionist trade policy, it is expected that the US will strengthen its domestic-centered policies surrounding semiconductors, which are core to advanced technologies such as AI, and expand the scope and level of semiconductor regulations against China. Although there are concerns about some market opportunities shrinking and increased uncertainties across Korea’s semiconductor upstream and downstream industries due to pressure to join US regulations against China, there is also an expectation of potential benefits from new supply chain formation and market restructuring processes.

In the global semiconductor market, large-scale mergers and acquisitions (M&A) are actively underway in AI semiconductors, power semiconductors, and advanced packaging sectors to respond to the increasing data demand in the AI era. Seunghoon Yeom, Deputy Head and Technology Industry Leader at Samjong KPMG, said, “As the application of AI technology across various industries accelerates, companies must actively consider partnership and investment strategies to quickly respond to the expanding demand for advanced semiconductors,” adding, “Mid- to long-term investment support measures at scale should be prepared to strengthen advanced semiconductor technological capabilities and enhance global competitiveness across the entire semiconductor value chain.”