Clear Recovery in Taiwan Semiconductor Sales Positively Impacts Korean Semiconductor Industry

Semiconductor-related exhibits such as wafers are displayed at the Samsung Electronics Seocho Building Delight Exhibition Hall in Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Changhwan Lee] Last month's sales in Taiwan's semiconductor sector sent a clear signal of recovery, leading to positive outlooks for the Korean semiconductor industry as well.

According to Hana Financial Investment on the 12th, the previous month's sales of Taiwanese semiconductor companies TSMC and UMC increased by 15% and 17.4% year-on-year, respectively.

The fourth-quarter sales of Taiwan's TSMC, the world's number one foundry company, exceeded expectations, driven by premium smartphones and high-spec computers.

Non-memory backend service companies such as ASE Technology, Chipbond, ChipMOS, and Powertech also recorded strong performances last month. The increase in sales is attributed to rising demand for 5G-related products.

The memory market remained solid as well. Nanya Technology's sales last month decreased by 10.3% year-on-year, but this was an improvement compared to -21.1% in November. This was due to a moderation in the decline of DRAM prices in December.

NAND flash companies also showed improved performance during the same period. In addition, semiconductor distributors and silicon wafer suppliers demonstrated steady sales.

Kim Kyungmin, a researcher at Hana Financial Investment, stated, "The implications of Taiwan's semiconductor sector sales in December include the robustness of non-memory foundry and backend processes, the memory market, improvements in distribution, and a mitigation of the decline in silicon wafers." He added, "The December sales of Taiwan's semiconductor sector clearly indicate a recovery in the market, which is positive for investment sentiment in the Korean semiconductor industry."

This content was produced with the assistance of AI translation services.