Semiconductor market will rise in 2024, experts say

Dec 26, 2023, 09:02 am

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Shipment of export cargo to Busan Port/ Source: Yonhap

By AsiaToday reporter Park Ji-eun

Experts say that the manufacturing industry, led by semiconductors, is expected to grow sharply in January, accelerating their inventory depletion and productivity.

The professional survey index (PSI) for the manufacturing sector’s business conditions came to 108 for next month, up from 100 for this month, according to a survey by the Korea Institute for Industrial Economics & Trade (KIET). A PSI reading above 100 means optimists outnumber pessimists. The survey was conducted earlier this month on 157 experts in 214 industries.

Noteworthy is the semiconductor business outlook index, which hit 160. It has been exceeding the benchmark for seven consecutive months since July. Experts believe the chip industry will see the biggest improvement among other industries. The memory chip market is currently oversupplied. Although Samsung Electronics’ semiconductor business losses have exceeded 12 trillion won in cumulative total in the third quarter of this year, it has started to rebound as the deficit has decreased. Besides, increasing sales of expensive high-bandwidth memory (HBM) amid the growing Generative AI market is another reason for high expectations.

Other sectors that are expected to show a significant upward trend include mobile phones (141), bio-health (116), shipbuilding (111), and textile. Samsung Electronics’ Galaxy S24 equipped with the latest AI technology will be unveiled in the middle of next year.

Home appliances (100) and automobile (100) sectors are expected to maintain the figures with the previous month. Displays (90), machinery (89), chemical (81), and steel (91) sectors are expected to be sluggish from the previous month.

The domestic demand forecast index fell slightly from the previous month, still falling short of the benchmark, but exports exceeded the benchmark as it rose from the previous month. Production also exceeded the benchmark.

#semiconductor #KIET #PSI