Korea’s semiconductor output drops by nearly half

November 2, 2004 – The growth of semiconductor output in South Korea dropped by almost half in the last four months, government data showed Sunday, according to the Asia Pulse Pte Ltd. The production of semiconductors rose 34.2% in September from a year earlier, sharply down from a 68.1% jump in May, according to a tally by the National Statistical Office.

With chip production tumbling, the nation’s overall industrial output grew a mere 9.3% in September, compared with a 13.5% increase in August. The semiconductor sector’s contribution to overall output growth thus dropped to 5.28% in September from 8.60% in May.

Analysts said industrial output climbed at a single-digit rate in September, mainly because of weak production growth in the chip industry. A further deceleration in growth of overall industrial production is expected down the road as the semiconductor industry is showing signs of moderating gradually. In addition, production of mobile phones rose 29.1% in September, compared with a 86.5% surge in May, according to the tally.


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