South Korea's Semiconductor Exports Reach Record High

South Korea's semiconductor exports reached a record $141.9 billion in 2024, marking a significant transformation in its export landscape as reliance on China decreased. Exports to China and Hong Kong fell from 61.6% in 2020 to 51.7% in 2024, with direct exports to China declining from 40.2% to 33.3%. In contrast, exports to Taiwan surged from 6.4% to 14.5%, largely driven by SK Hynix's supply of high-bandwidth memory (HBM) chips to Nvidia through TSMC. Vietnam also emerged as a growing market, accounting for 12.9% of exports, up from 11.6% in 2020, influenced by Samsung's relocation of smartphone production. The shift is attributed to the U.S.-China chip competition and the rising demand for AI technologies, prompting manufacturers to diversify their supply chains. This trend is expected to continue as global producers adapt to changing market dynamics.