"Semiconductors and 4 Other Major IT Items to Lead Export Growth This Year"

Martial Arts, 2024 Current Issues Press Briefing
IT Item Export Growth Rate Forecast Up 5~55% Compared to Last Year

Semiconductors, solid-state drives (SSD), wireless communication devices, displays, and home appliances are expected to lead export growth this year among the five major information technology (IT) items.

Semiconductor. / Photo by Jinhyung Kang aymsdream@

On the 30th, the Korea International Trade Association (KITA) stated at a '2024 Trade Issues Press Briefing' held at the Trade Tower in Gangnam-gu, Seoul, "Semiconductor exports are expected to rebound as demand for front-end IT items such as smartphones and PCs improves."

According to KITA's Institute for International Trade and Commerce, among the 13 major key items this year, the projected export growth rates for IT items such as semiconductors, computers, wireless communication devices, displays, and home appliances exceeded last year's figures by 5 to 55%. The projected growth rates by item are 21.2% for semiconductors, 55.4% for computers, 7.7% for wireless communication devices, 5.9% for displays, and 5.1% for home appliances.

KITA expects that for semiconductors, the prices of NAND and DRAM will rise and inventories will decrease, leading to favorable conditions for memory and next-generation semiconductor items.

In particular, with increased demand for electronic products this year, global semiconductor sales are expected to increase by 18% compared to last year, with memory semiconductor sales projected to grow up to 73%. For computers, as demand for front-end IT devices recovers, SSD prices are rising, and export growth is expected to increase significantly by 55.4% compared to the previous year.

Wireless communication devices are expected to see expanded exports due to increased smartphone demand, and displays are anticipated to perform well in exports by creating new markets in the organic light-emitting diode (OLED) sector. Home appliances are expected to experience gradual growth centered on premium products in the North American region.

KITA identified 'global economic contraction' and 'opportunity factors amid China's economic slowdown' as short-term variables affecting exports this year.

They noted that the effects of major countries' monetary tightening policies, which continued until last year, will fully manifest this year, potentially delaying global economic recovery. Additionally, while China's economic growth is expected to be limited, it remains a huge market offering export opportunities. China's IT demand is projected to increase by 9.3% this year, surpassing the global IT demand growth forecast of 6.8%. The US-China trade conflict and geopolitical risks are also cited as structural variables impacting exports this year.

KITA explained, "The share of Korea's total exports to the United States, which had increased by about 1 percentage point over the past five years, rose by 2.2 percentage points last year," adding, "There has been an expansion of investment in the US and a reduction in investment in China in industries such as semiconductors and secondary batteries, and some Korean companies have relocated their industrial bases from China to Vietnam and Indonesia."

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