Chinese state media highlighted South Korea's booming semiconductor exports, attributing the surge to increased investment in artificial intelligence (AI) in China, which is driving demand for memory chips. The commentary stressed that to maintain export growth amid rising global supply chain uncertainties, South Korea must strengthen its industrial supply chain cooperation with China.
The Global Times reported on October 22 that "South Korea's semiconductor exports to China have seen a significant increase," noting that this reflects the substantial demand for memory chips generated by China's AI development, data center construction, and infrastructure investments. It also pointed out that the supply chain in the Asia region remains resilient despite external geopolitical instability.
According to data released by the Korea Customs Service, South Korea's semiconductor exports from October 1 to 20 reached $27.5 billion, a 222.5% increase compared to the same period last year, marking the highest level for this timeframe. Exports to China rose by 154.4% year-on-year to $16.6 billion, surpassing exports to the United States, which totaled $10.7 billion.
The commentary emphasized that China possesses the world's largest semiconductor market, while South Korea has advanced semiconductor supply capabilities, indicating a structurally close alignment between the two countries' technology industries. It argued that the deep integration of Samsung Electronics and SK Hynix's production facilities in China with local supply chains makes it difficult for geopolitical factors alone to alter the industrial ties between the two nations.
However, the commentary also pointed out that South Korea's semiconductor exports are heavily concentrated in the memory sector, and export controls from certain countries could pose potential risks. To transform the current export boom into sustainable long-term growth, South Korea should not rely solely on technological advancements and product improvements but should establish a strategic approach at the industrial supply chain level and enhance cooperation across the entire Asian semiconductor ecosystem. It stressed the importance of maintaining and expanding cooperative relations with China.
Additionally, the commentary noted the recent progress in the second phase of service and investment negotiations under the Korea-China Free Trade Agreement (FTA). It suggested that expanding institutional openness in these areas could broaden the complementarity of the semiconductor industry, currently focused on goods trade, to include information technology (IT), advanced manufacturing, and the digital economy.
South Korea's semiconductor exports have been on the rise in recent years. In 2024, exports reached $141.9 billion, a 43.9% increase from the previous year, and in 2025, they grew by 22.2% to $173.4 billion. Notably, semiconductor exports have continued to surge this year, with the first quarter recording $78.5 billion, a 139% increase year-on-year, and total exports for the first half of the year reaching $192.4 billion, already surpassing last year's annual total.
* This article has been translated by AI.
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