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Home > News > Samsung and SK Hynix will benefit from 5G commercial

Samsung and SK Hynix will benefit from 5G commercial

  According to businesskorea, a South Korean research institute said that the Korean semiconductor industry has now entered a downturn, and the commercialization of 5G telecom may provide a turning point for the Korean semiconductor industry.


The International Trade Institute (IIT) predicts that Korean chip makers will benefit from the rising demand for memory chips from the commercialization of 5G, as they firmly control the semiconductor market, and Chinese chip makers are still struggling.

IIT, affiliated with the Korea International Trade Association (KITA), said that despite the recent decline in exports, the Korean storage semiconductor industry still enjoys a strong competitive advantage. In 2018, the Korean semiconductor industry accounted for 63.7% of the global memory market.

Experts predict that Samsung Electronics and SK Hynix will have a good market prospect when 5G investment is fully launched.

The problem lies in the non-memory field. In the foundry industry, South Korea's market share rose from fourth place in 2017 to second place in 2018, but in the field of no-factory (design), South Korea even lags behind China. In 2016, the total number of fabless companies in Korea reached 150, accounting for about 10% of China. SK hynix is ​​building a fab in Wuxi, China, because there are many IC design companies in China.

Due to the rise of artificial intelligence (AI), autonomous driving and the Internet of Things (IoT), the demand for new chip designs may increase dramatically, which may be a negative factor for the Korean semiconductor industry. Especially for Korean chip makers, this may become even more painful, as opportunities may arise in industries such as automotive APs that have not yet been seized by anyone.