ICT exports in August before 'Huawei sanctions' rise for 3 consecutive months thanks to semiconductors

US Exports Up 18% vs China Down 3.3% Contrast
Attention on September Plus After Huawei Sanctions

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chae-seok] Last month, information and communication technology (ICT) exports continued their growth for the third consecutive month, showing strength in major items such as semiconductors, computers, and peripherals. However, with the U.S. Department of Commerce imposing export restrictions on Huawei, it has become uncertain whether major semiconductor companies like Samsung Electronics and SK Hynix can guarantee positive results this month.

◆ August, Semiconductors Hold on with a Barely Positive +0.3%

Source: Ministry of Trade, Industry and Energy

According to the Ministry of Trade, Industry and Energy on the 15th, last month's ICT export value was $15.24 billion, up 0.3% from the previous year. The average daily export during the same period also increased by 7.1%.

ICT exports have increased for three consecutive months since June. After a -2.6% decline in May, it turned positive to 1% in June, then recorded 3.3% in July and 0.3% in August.

Imports expanded by 4.3% to $9.19 billion, and the trade balance was preliminarily estimated at a surplus of $6.05 billion.

By item, semiconductors exported $8.29 billion worth, an increase of 2.6% compared to the previous year.

Due to the strong performance of foundry (semiconductor contract manufacturing), system semiconductor exports reached $2.71 billion, a 16% increase from the same period last year.

Memory semiconductor exports declined by 2.3% year-on-year to $5.07 billion, affected by weak demand for servers and PCs.

Exports of computers and peripherals surged by 98.2% to $1.34 billion. In particular, solid-state drive (SSD) exports increased by 165.9%, leading an 11-month consecutive growth trend.

Mobile phone exports dropped 33% to $700 million. Both finished products (-39.8%) and parts (-29.9%) decreased, which the Ministry of Trade, Industry and Energy explained as a result of overall consumption contraction due to COVID-19 and other factors.

Display exports also fell 16.9% to $1.8 billion. The decline continued due to weakening demand for organic light-emitting diode (OLED) panels and reduced production of liquid crystal displays (LCDs).

◆ Export Share: 47% Decrease to China, 11% Increase to the U.S... September 'China Performance' in Focus

Source: Ministry of Trade, Industry and Energy

By region, exports to China, including Hong Kong, amounted to $7.1 billion, down 3.3% year-on-year. Mobile phone exports especially dropped 65.7% to $130 million. Displays (-18%) and semiconductors (-1.2%) also failed to escape the downward trend.

On the other hand, exports to the U.S. rose 18% to $1.75 billion, showing strong performance centered on semiconductors ($570 million, 5.8%) and computers and peripherals ($470 million, 152.3%).

Exports to Vietnam decreased by 2% to $2.76 billion. Displays (-12.8%) were sluggish, while semiconductors (6.6%) and mobile phones (27.9%) increased.

Exports to the European Union (EU) and Japan fell by 1.8% and 16.6%, respectively, to $860 million and $270 million.

◆ September with 2.5 More Working Days, Last Chance in Q3 to End Six Months of Negative Korean Exports

Source: Ministry of Trade, Industry and Energy

Meanwhile, mid-next month, the ICT export performance reflecting the results of Samsung Electronics, SK Hynix, and others after the U.S. Huawei sanctions will be announced.

According to the Ministry of Trade, Industry and Energy, 47% of Korea's ICT exports go to China, and 11% go to the U.S.

ICT export performance is expected to have a significant impact on Korea's overall export performance, which has been declining for six consecutive months.

This month has 23 working days, 2.5 days more than last year's 20.5 days. Because of this, September was considered an opportunity to aim for an export rebound before the fourth quarter, but the Huawei sanctions have introduced a new variable.

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