# Semiconductor industry in South Korea

In South Korea, the semiconductor industry has continued to grow since the 1980s due to the heavy use of semiconductors in computers and other devices. South Korea held a 17.7 percent share in the global semiconductor market in 2022, and continued to be the second largest in the world for the 10th consecutive year since 2013.
The country accounted for 60.5% of the global memory semiconductor market, with a DRAM market share of 70.5% and a NAND market share of 52.6%. South Korea is continuously focusing on R&D and investment to maintain its competitive advantage. In addition, South Korea is pushing to expand its foundry market share based on ultra-fine processing technology. The country accounts for 17.3% of the global foundry market.
* South Korea (60.5%)
* other countries (39.5%)
* South Korea (70.5%)
* other countries (29.5%)
* South Korea (52.6%)
* other countries (47.4%)

## Timeline

The history of Korea's semiconductor industry began in 1965.
* In 1983: South Korea became the third country in the world to develop 64K DRAM after the U.S. and Japan.
* In 1992: South Korea rose to the top of the DRAM market.
* In 2013: South Korea commercialized the world's first 3D V-NAND flash memory.

## Historical Context

In the early stages of South Korea's semiconductor industry, the private sector took initiative in the investment and production of semiconductors. Manufacturers called for an intervention, as a result of a decline in government involvement. Samsung Electronics was one of the leaders in the development of semiconductor production and business. In 1978, the founder of the Samsung Group, Lee Byung-chul, established Samsung Semiconductor, before he continued to build the foundation of the semiconductor industry in South Korea. By the end of 1983, Samsung developed he 64K DRAM, and led South Korea to become the third country in the world to develop 64K DRAM, following Japan, who was the first in 1976, and then the U.S. in 1981.

## Major companies

* DB HiTek
* DI Corporation
* Hana Micron
* Samsung Electronics
* SK Hynix
* Telechips

## Semiconductor cluster

The South Korean government announced in January 2024 its plan to invest about $470 billion over the next 23 years to build the world's largest semiconductor cluster in a large production complex to be built in Gyeonggi Province, along with SK Hynix. South Korea aims to increase the self-sufficiency ratio of essential materials, parts, and equipment for chip production to 50 percent by 2030.
   "If we complete the construction of the semiconductor mega cluster at an earlier date, we will achieve the world's leading competitiveness in the chip sector and provide quality jobs for young generations."
   "We already possess world-class technological and production capabilities in several areas, such as memory chips and OLED displays. The government must firmly support the private sector's investment for further growth."
Gumi is also the city which accommodate Semiconductor Clusters with Samsung Electronics and small and middle sized enterprises. SK Siltron also invest their factories and R&D centres in Gumi.

## Output

In 2022, semiconductors were South Korea's leading export, totaling $129 billion and making up nearly 19% of the nation's overall exports. The Statistics Korea released statistical data demonstrating that, from February 2023 to February 2024, semiconductor production increased 65.3%, which was the largest increase since the end of 2009. In addition to the semiconductor industry holding prominence within South Korea, the country leads globally in memory chip production, with Samsung Electronics and SK Hynix dominating the market, holding global market share of 73% for Dynamic Random-Access Memory (DRAM) chips and 51% for NAND flash. However, in 2023, South Korea held approximately 13% of the global semiconductor market, reflecting a gradual decline from previous years. Despite limited natural resources and size constraints, South Korea continues to invest heavily in semiconductor manufacturing, with the aim of Samsung and SK Hynix to significantly increase monthly wafer production to 7.1 million by 2030.