A global boom in generative AI sparked by the release of ChatGPT at the end of 2022 has changed Korea's semiconductor export landscape. China remained the No. 1 destination for chip exports, but both its export value and share fell. Taiwan, by contrast, saw sharp gains in both value and share, rising from No. 4 to No. 2 for Korean semiconductor exports.
The Bank of Korea (BOK) released an analysis report on the 27th titled "Korea's major manufacturing production and supply map." First issued in 2023, the report compiles maps and charts to provide an at-a-glance view of regional production and trade flows for 11 key domestic manufacturing sectors. It is also called the manufacturing version of "Daedongyeojido (Grand Map of Korea)."
The 11 key industries are: ▲ semiconductors ▲ displays ▲ wireless communication devices ▲ automobiles ▲ auto parts ▲ steel ▲ shipbuilding ▲ petroleum refining ▲ petrochemicals ▲ machinery and equipment ▲ electrical equipment.
◇ China's export share shrinks, Taiwan's expands... "Nvidia–TSMC–Samsung and SK supply chain strengthens"
According to the Bank of Korea (BOK), China was the top destination for Korea's semiconductor exports last year. The export value was $74.456 billion, slightly down from three years earlier in 2022 ($75.8 billion). The export share narrowed from 53.1% to 40.3%.
Taiwan ranked No. 2 with exports totaling $36.769 billion. That is triple the value from three years earlier ($12.778 billion). Its share surged from 9% to 19.9%, overtaking Vietnam, the previous No. 2.
The Bank of Korea (BOK) analyzed that "since the spread of Generative AI at the end of 2022, demand has rapidly shifted from traditional CPUs and general-purpose DRAM to GPUs specialized for AI computation and High Bandwidth Memory (HBM), cementing a global AI Semiconductor supply chain centered on the United States' Nvidia, Taiwan's TSMC, and Korea's Samsung Electronics and SK hynix."
By major product, the share of memory chip exports to China fell from 71.5% to 50.1%, while Taiwan's rose from 6.6% to 28.6%. For system semiconductors, China's share decreased from 45.7% to 31.5%, while Taiwan's grew from 10.2% to 12.9%.
Vietnam, previously No. 2, was pushed to No. 3. Last year's exports to Vietnam totaled $24.832 billion, up from three years earlier ($16.273 billion). The share edged up from 11.4% to 13.4%.
The United States ranked No. 4 with exports of $19.02 billion, up from three years earlier ($13.626 billion). Its export share grew from 9.6% to 10.3%.
Meanwhile, the share of imports of Chinese semiconductor materials, parts, and equipment fell from 23.1% to 22.5%. Japan's share also declined from 21.4% to 20.4%, and the United States' from 17% to 16.3%. The Netherlands' share, by contrast, rose from 3.2% to 6.1%. The Netherlands became No. 1 for semiconductor manufacturing equipment imports (26%). That shift reflects the decline in the United States' share, which fell from 23.3%—No. 1 in 2022—to 16.9%.