Taiwan Semiconductor's main force is wafer foundry, which is one of the reasons why its market competitiveness is better than that of South Korea.

(Reuters)

[Compilation of Wei Guojin/Taipei Report] South Korean media BusinessKorea reported that Taiwan's semiconductor exports will total US$184.1 billion in 2022, an annual increase of 18.4%, which is the seventh consecutive year of growth and the third consecutive year of growth of more than 10%.

In contrast, South Korea’s semiconductor exports rose by only 1% last year to US$129.1 billion.

According to the report, experts believe that such a contrast is due to different industry mixes.

Taiwan's semiconductor industry is mainly based on TSMC and its foundry business, while South Korea is mainly based on Samsung Electronics' memory business.

Memory chips are products that are immediately impacted by the external economic environment, while the wafer business is based on orders, so inventory management is relatively free, and pricing is relatively stable.

Please read on...

The global memory chip market will begin to shrink in the second half of 2022. Compared with the previous year, South Korea's semiconductor exports fell for five consecutive months until the end of December last year.

In December alone, South Korea's exports fell by 29.1% year-on-year.

Last year, TSMC's sales and operating profit increased by 43% and 73% respectively, while Samsung Electronics increased by 8% and 16% respectively.

The market is expected to remain weak this year.

In addition, the Taiwan government and the Legislative Yuan have done better than the South Korean authorities in assisting the semiconductor industry. Taiwan passed the Taiwan Chip Law on January 7 and will implement it this year, the report said.

In South Korea, due to differences of opinion, similar bills have not yet been finalized.

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