South Korea's National Statistical Office: South Korea's semiconductor shipments fell 22.7% in July 2022 from the same period last year

South Korean chipmakers' factory shipments fell for the first time in nearly three years in July, highlighting weak demand for semiconductors, a barometer of the global economy. Data released by Statistics Korea on Wednesday showed that semiconductor shipments fell 22.7% in July from a year earlier, compared with a 5.1% increase in June. National inventories remained high in July, up 80% from a year earlier, the same as the previous month.

Data map (from: Samsung)

Chip production slowed for a fourth straight month in July, suggesting major producers such as Samsung Electronics Co. and SK Hynix Inc are adjusting output to cope with cooling demand and rising inventories.

South Korea’s weakening chip sales momentum further adds to the bleak outlook for the global economy. Semiconductors are key components in a global economy that has become increasingly reliant on electronics and online services. Demand for chips has surged during the pandemic as many people switched to remote work and distance education.

The decline in semiconductor shipments partly explains the drop in South Korea’s tech exports in July. Statistics released last month by the Ministry of Science and ICT showed that information and communications technology (ICT) exports fell 0.7% year-on-year in July, with memory chip exports falling 13.5%.

From Global Market Report