Chip exports likely to fall more than 30%

September 17, 2001 – Korea – Korea’s semiconductor exports for this year are likely to fall about 31 to 35% from last year to between 17 billion and 18 billion won, the Korea Semiconductor Industry Association said.

The setback is due to the global business slowdown and lack of demand, according to a report released by the association.

Earlier this year, the association forecast semiconductor exports would rise 9.6% to 26 billion won. But in July, it lowered its estimate to 21 billion won, and then revised it downward again to below 20 billion won.

If semiconductor exports fall to the level projected by the association, it will be the first time since 1998 that the nation’s chip export revenue has tumbled below the 20 billion won mark.

In 1998, the nation earned 17 billion won through chip sales. The association said that the portion of semiconductors in the nation’s overall exports will shrink to around 10% from 15.1% last year.

The association revised the forecast because business recovery is not expected until the end of the year. The semiconductor supply and demand situation, however, is expected to improve from the first half of next year after PC makers complete the adjustment of their inventories, according to the association.

Meanwhile, as of the end of August, semiconductor exports this year fell 38.7% to 10.4 billion won. In August alone, chip exports plunged 62%, totaling a mere 920 million won.


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