Semiconductor key indicator demand picks up, South Korea is expected to drive the recovery of the Asian supply chain

According to Taiwan Economic Daily, semiconductor sales are a key indicator of the development of the global technology industry, as semiconductors are needed in everything from smartphones to laptops, TVs and cars. The three indicators of the semiconductor industry showed signs of recovery, and the rebound in demand for the technology industry is expected to benefit export-oriented economies such as South Korea, thereby driving the recovery of the supply chain throughout Asia.

The report cited Bloomberg's analysis that three indicators showing the rebound in global semiconductor demand are: expanded production capacity, chip prices and chip inventory.

Regarding expanding production capacity, according to a survey by the International Semiconductor Equipment and Materials Organization, chip manufacturing equipment shipments in October reached the highest level since the end of last year, confirming the statement that semiconductor market sales will continue to rise.

Currently, chip prices have not risen, but have stabilized. However, a survey by market research company inSpectrum shows that memory chip prices have stopped falling. Previously, due to the decline in semiconductor prices, South Korea's export indicators deteriorated. From January to October this year, South Korea's export volume decreased by 10.4% compared with the same period last year.

Regarding chip inventory, Mike Howard, research director of French research institute Yole Developpement, said that the market was previously in a serious oversupply situation, "and now inventory has begun to decline."

It is understood that South Korea supplies more than two-thirds of the world's DRAM memory chips. The semiconductor inventory in South Korea's domestic warehouses reached a peak in July this year. According to data from the South Korean government statistics bureau, South Korea's chip inventory in September fell 16% from August, which was the largest decrease since June 2017. At the same time, global chip sales rose 3.4%, the largest increase since August 2017.