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South Korea's December 2023 semiconductor exports up 21.8% year-on-year to $11 billion, a new annual high

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Update time : 2024-01-12 11:16:21
        South Korea's domestic semiconductor exports hit the highest annual growth rate on record. Prices of storage semiconductors, the main export product of Samsung Electronics and SK Hynix, continue to rise.
 
 
        According to South Korea's Ministry of Industry, Trade and Resources (MITR) on January 1, 2023, semiconductor exports reached $11 billion in December, a sharp increase of 21.8% year-on-year. South Korea's semiconductor exports had been declining since August 2022, but rebounded in November 2023 with a 12.9% increase, marking a 16-month turnaround and two consecutive months of positive growth.
        Prices of storage products, particularly DRAM and NAND, have also been steadily rising. According to global market research firm DRAMeXchange, the average fixed transaction price for PC DRAM general purpose products featuring 8GB of DDR4 was $1.65 in December 2023, up 6.45 percent from November. After more than two years of decline, DRAM prices managed to rebound in October 2023, experiencing three consecutive months of growth. During the same period, prices for NAND general purpose products, including memory cards and USB devices with 128GB capacity utilizing 16Gx8 MLC technology, also continued to rise. 
        This was mainly attributed to the reduction in production by major suppliers.2023 At the beginning of the year, the memory industry initiated a move to reduce wafer inputs in response to the sharp drop in demand. As a result of this, inventories are gradually decreasing and there is now a trend for major demand sources to place orders again.
        Expansion of the generative artificial intelligence (AI) market is further driving the demand for storage semiconductors. U.S. companies such as NVIDIA and AMD are incorporating High Bandwidth Memory (HBM) into Graphics Processing Units (GPUs) designed for AI computing tasks.The HBM market, which involves bundling of multiple DRAM modules to increase data transfer speeds, is expected to grow significantly from $1.5 billion in 2023 to $5.6 billion in 2025, an increase of 3.7x. 
        The emergence of "device-side AI" is becoming a positive trend, allowing devices such as smartphones and personal computers (PCs) to perform AI tasks without a network connection.In 2024, AI capabilities will be integrated into devices ranging from Samsung's Galaxy S24 series to Apple's iPhone 16 series.KB Securities Researcher Kim Dong-won said, "AI functions will spread not only to smartphones, but will also penetrate all aspects of daily life, including PCs, home appliances and cars. This trend is expected to lead to a sharp increase in demand for customized AI semiconductors."
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