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A semiconductor production line. (Hankyoreh archives)

Information and communications technology (ICT) exports in February increased for the first time in 16 months, despite the economic impact of the novel coronavirus. The situation is largely the result of normal production of semiconductors, a major export item, and a rise in data center demand.

On Mar. 11, the Ministry of Science and ICT (MSIT) and the Ministry of Trade, Industry and Energy (MOTIE) announced that a surplus of US$6.04 billion had been provisionally estimated for last month, with ICT exports totaling US$13.74 billion and imports totaling US$7.71 billion. Propelled by increases in exports of semiconductors, mobile phones, and PCs, the percentage was up by 8.5% from the same month in 2019, representing the first increase in the 16 months since November 2018.

Semiconductors in particular showed an increase of 9.3% in total export dollar value, with NAND and memory multi-chip packages (MCP) showing respective increases of 34% and 27.4% compared to the same month in 2019. This increase was the first in 15 months since December 2018. System semiconductors, which are largely represented by image sensor and foundry exports, rose by 27.5%.

Mobile phones showed a total rise of 4.7%, with exports of finished products down by component exports up by 23% compared to February 2019. Computers showed an 87.8% increase from the same period last year, with rises of 171.7% in sales of SSDs (memory semiconductor-based storage devices) and 126.6% in peripherals. In contrast, display sales were down by 14.9% amid a decline in LCD production despite growing OLED panel demand for smartphones.

Annual increases in S. Korea’s ICT exports for February

By country, top-ranked exporter China (including Hong Kong) showed a 4.9% increase in exports (US$6.1 billion), while Vietnam’s exports grew by 12.9% (US$2.3 billion). The US (US$1.7 billion) and European Union (US$800 million) also showed respective rises of 19.5% and 14.6%.

Exports by small and medium-sized businesses were up by 10% from February 2019 amid increased exports of rechargeable batteries and other electrical equipment, semiconductors, computers, and peripherals. Small businesses in particular showed a total increase of 11.3%, with boosts of 17.3% for computers and peripherals and 12.1% for mobile phones.

“While there were some distribution difficulties in February due to the coronavirus, raw material supplies were relatively smooth apart from Wuhan, and air shipments were able to weather the crisis through the use of alternate routes,” said a memory semiconductor industry source.

“If the situation last year was rock bottom, then the contrast this year is strong, with rises in demand by data centers and price increases,” the source added.

Regarding client companies’ desire to secure supplies amid the coronavirus outbreak, the source said, “It’s difficult to say right now. If the global economy slows down, client companies could reduce their orders because they don’t have the means to acquire inventory.”

By Shin Da-eun, staff reporter

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