[2023 Semiconductor Outlook] The Survival Kit for Semiconductors Facing the Harsh Winter is 'New Technology'

[Asia Economy Reporter Park Sun-mi] The largest export item in South Korea is semiconductors. Semiconductor exports amounted to $111.7 billion from January to October this year, accounting for 20% of total exports. It is the Korean representative product with the largest share among single items. The export growth rate compared to the same period last year is 8.3%, classifying it as an 'export boom' item, and the export volume achieved from January to October already approaches last year's total of $128 billion. However, the environment surrounding semiconductors, which serve as the cornerstone of Korean exports, is gradually deteriorating.

The prolonged Russia-Ukraine conflict has delayed the global economic recovery, and demand for not only personal electronic devices but also enterprise data servers has decreased, making it difficult to expect another semiconductor boom. From the fourth quarter (October to December), semiconductor sales have already started to decline compared to the previous quarter, and the dominant forecast is that global semiconductor sales will experience 'negative growth' next year compared to this year.

If the vicious cycle of increasing memory semiconductor inventory and falling prices continues next year, South Korea, a powerhouse in memory semiconductors, will suffer a critical blow. Moreover, the intensifying US-China hegemonic competition and semiconductor support laws from major competing countries threaten the status Korea has built in the semiconductor industry. The only breakthrough is 'new technology.' Semiconductor companies are seeking ways to survive the dark semiconductor market conditions through technological capabilities.

Semiconductor companies such as Samsung Electronics and SK Hynix are betting on new products applying advanced new technologies ahead of competitors, such as PIM (Processing In Memory), DDR5, GDDR (Graphics Double Data Rate) 6, 4th generation HBM (High Bandwidth Memory) 3, and CXL (Compute Express Link). They are determined to stake their future on the co-growth of new industries and new technology products that consume vast amounts of data, such as machine learning, high-performance computing, and artificial intelligence (AI). To secure semiconductor profitability, they plan to further strengthen the competitiveness of new products applying high value-added new technologies in 2023.

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