South Korea Semiconductor Memory Market: Industry Analysis and Forecast (2024-2030)

South Korea Semiconductor Memory Market Overview

South Korea is home to two of the world's largest memory chip manufacturers, Samsung Electronics and SK Hynix, which collectively hold approximately 70% of the global market share in dynamic random-access memory (DRAM) and NAND flash memory. This dominance is increasingly relevant as the demand for high-performance memory chips surges, driven by advancements in artificial intelligence (AI) technologies. The South Korean government aims to leverage this strength to enhance its position in the AI semiconductor sector, which is expected to grow rapidly in the coming years. 

 

In response to the competitive landscape of the semiconductor industry, South Korea has announced a substantial USD 19 billion support package aimed at diversifying its semiconductor capabilities beyond memory chips. This initiative, described by President Yoon Suk-yeol as a necessary step in "national all-out warfare" for semiconductor supremacy, seeks to boost the country's market share in non-memory chips, such as mobile processors, from 2% to 10%. The funding will facilitate the construction of mega-chip clusters and improve infrastructure, aiming to create a robust ecosystem for semiconductor production and innovation. This includes support for small and medium-sized enterprises (SMEs) and financial assistance through the Korea Development Bank.

 

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South Korea Semiconductor Memory Market Dynamics    

The Demand is growing for the Consumer electronics and Telecommunication sector driving the demand for South Korea semiconductor memory market

The demand for South Korea semiconductor memory market is primarily driven by several key factors, including the rapid growth of consumer electronics, advancements in telecommunications, and the increasing integration of technology in various sectors. The surge in demand for high-performance memory chips is closely linked to the proliferation of devices such as smartphones, tablets, and laptops, which require advanced memory solutions to support their functionalities. In particular, the rise of 5G technology and the expansion of data centers have further fueled the need for faster and more efficient memory components, as these technologies demand higher data processing capabilities and storage solutions.

 

Additionally, the ongoing digital transformation across industries, including automotive and industrial applications, is creating new opportunities for memory semiconductor products, thereby driving demand in the market. Moreover, South Korea's strategic investments in semiconductor manufacturing technologies, such as extreme ultraviolet (EUV) lithography, are enhancing the production of smaller and more efficient memory chips. This focus on innovation and cutting-edge manufacturing processes positions South Korean companies to meet the growing global demand for advanced semiconductor memory solutions. As a result, the semiconductor memory market in South Korea is expected to experience significant growth, with projections indicating a market volume increase to over USD 50 billion by 2030.

 

South Korea Semiconductor Memory Market Segmentation

By Application, The South Korean semiconductor memory market is experiencing robust growth, driven primarily by the increasing demand for consumer electronics such as smartphones, tablets, and laptops. Consumer electronics held the largest market share in 2023. In 2022, South Korea accounted for 60.5% of the global memory semiconductor market, with significant shares in DRAM (70.5%) and NAND (52.6%) technologies, positioning the country as the leading producer in these segments. The overall semiconductor market in South Korea is projected to grow at an annual rate of 8.41%, reaching a market volume of USD 28.90 billion by 2030.

This growth is fueled by several factors, including the rising global population and the widespread adoption of advanced technologies, which create a continuous demand for devices with enhanced functionality and connectivity. Furthermore, the integration of smart technologies such as AI and IoT into consumer electronics is generating lucrative opportunities for market expansion. The increasing adoption of 5G technology also plays a critical role in driving demand for connected devices and smart products, further supporting the semiconductor market's growth.

 

In response to this demand, South Korean manufacturers like Samsung and SK Hynix are investing heavily in research and development to innovate and introduce new semiconductor technologies. The government is also backing these efforts with substantial investments, including a USD 19 billion package aimed at bolstering the semiconductor industry amidst global competition and supply chain challenges. As a result, South Korea's semiconductor sector remains a vital component of its economy, accounting for 18.9% of total exports in 2022, with a total export value of USD129.2 billion.

South Korea Semiconductor Memory Market Competitive Landscape

Samsung Electronics and SK Hynix, two of the largest semiconductor companies in South Korea, have reported strong financial results for 2022. Samsung Electronics semiconductor revenue reached USD 79.8 billion, up 23% year-over-year, while its operating profit from semiconductors grew 44% to USD 22.2 billion. The company also increased its global semiconductor market share from 12.5% in 2021 to 15.9% in 2022. In memory chips specifically, Samsung produced 45% of the global DRAM supply and 34% of the global NAND flash supply in 2022.

 

SK Hynix, another major player in the South Korean semiconductor industry, also saw significant growth in 2022. Its revenue increased by 34% year-over-year to USD 36.3 billion, while operating profit jumped 57% to USD 11.7 billion. SK Hynix's global market share in DRAM reached 29.1% in 2022, up from 28.5% in 2021. In the NAND flash market, the company's share grew from 12.3% in 2021 to 18.2% in 2022.

 

Other South Korean semiconductor companies, such as Magnachip Semiconductor, Silicon Works, and DB HiTek, also reported revenue growth in 2022, ranging from 6% to 30% year-over-year. These figures demonstrate the strength and resilience of the South Korean semiconductor industry, which is poised for continued growth driven by strong demand for memory chips and investments in advanced process nodes.

 

The report aims to provide industry stakeholders with a thorough study of the South Korea Semiconductor Memory Market. The research presents the industry& historical and present state with projected market size and trends, analyzing complex data in an easy-to-read manner. The research includes PORTER and PESTLE analyses along with the possible effects of market microeconomic factors. Analyzing both internal and external elements that could have a good or negative impact on the firm will provide decision-makers with a clear picture of the industry& future. By understanding the market segments and expected the size of the South Korea Semiconductor Memory market, the reports also help understand the market dynamics and structure.

 

South Korea Semiconductor Memory Market Scope

South Korea Semiconductor Memory Market
Market Size in 2023	USD  3.32 Bn.
Market Size in 2030	USD  5.53 Bn.
CAGR (2024(2030)	7.57 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
South Korea Semiconductor Memory Market Segments	By Product DRAM SRAM ROM EEPROM Others
	By Application Consumer Electronics IT and Telecommunication Automotive Industrial Aerospace and Defence Medical Others

 

South Korea Semiconductor Memory Market Key Players

1. Samsung Electronics Co., Ltd.
2. Micron Technology Inc.
3. Infineon Technologies AG
4. Intel Corporation
5. SK Hynix Inc.
6. Nextin
7. SEMES
8. DB HiTek
9. DI Corporation
10. Hana Micron
11. Telechip

 

For Global Scenario:

Semiconductor Memory Market: Global Industry Analysis and Forecast (2024-2030)