Chip breakthrough! South Korea's chip exports surge 134% year-on-year

South Korean Chip Exports Continue Strong Growth!

Today (February 23), data released by South Korea shows that in the first 20 days of February, driven by investments in artificial intelligence and data centers, South Korea’s chip exports surged by 134% year-over-year.

On the same day, the Korean stock market rose sharply. During trading, the Seoul Composite Index (KOSPI) rose over 2%, reaching a record high. Chip stocks collectively strengthened, with Samsung Electronics and SK Hynix both hitting new highs.

Chip Exports Surge 134%

Despite ongoing trade uncertainties caused by U.S. tariff policies, South Korea’s February exports continued to grow, supported by strong demand for chips.

Data released today by Korean Customs shows that, after adjusting for working day differences, exports in the first 20 days of February increased by 47.3% year-over-year, surpassing the revised 34% growth for the entire January. Unadjusted data shows exports up 23.5% YoY, imports up 11.7%, resulting in a trade surplus of $4.95 billion.

Bloomberg pointed out that although the report period includes three days of Lunar New Year holidays, reducing working days, South Korea’s overall trade data for February remains strong, indicating that, after removing calendar effects, export momentum remains robust.

Driven by investments in artificial intelligence and data centers, South Korea’s chip exports in the first 20 days of February increased by 134% YoY, continuing the strong upward trend; computer peripheral exports grew 129% YoY, and petrochemical product exports increased 11% YoY. Meanwhile, automobile exports fell nearly 27% YoY, and auto parts exports declined about 21% YoY, reflecting ongoing adjustments in the auto industry under U.S. tariff policies.

Earlier, on February 1, the Korean Ministry of Trade, Industry and Energy reported that Korea’s January exports increased 33.9% YoY to $65.85 billion, setting a record for the same period. Semiconductor exports alone surged 103% YoY to $20.5 billion, surpassing $20 billion for two consecutive months, boosting January’s total exports.

In January, Korea’s imports rose 11.7% YoY to $57.1 billion. As a result, Korea recorded a trade surplus of $8.7 billion in January. The trade surplus has now been positive for 12 consecutive months.

These figures indicate that Korea’s export engine remains supported by the global AI cycle, buffering other industry weaknesses. The Director-General of the World Trade Organization last month stated that the rapid development of AI is expected to support global merchandise trade this year, helping to offset pressures from U.S. tariffs.

Samsung Electronics and SK Hynix Stock Prices Hit New Highs

Today, driven by tech and automotive stocks, the Korean stock market surged significantly. During trading, the KOSPI index rose over 2%, reaching a historic high. Since the beginning of the year, the KOSPI has gained more than 40%.

Chip stocks rose collectively, with Samsung Electronics rising over 3% during trading and hitting a new all-time high; SK Hynix also rose nearly 3%, also reaching new highs. Auto stocks also advanced, with Hyundai Motor rising over 4%. Other stocks such as LG Electronics and Samsung Electro-Mechanics rose over 10%, and LG Display increased over 5%.

As of the time of this report, the KOSPI’s gains narrowed to within 1%, with Samsung Electronics up nearly 2%, SK Hynix up 0.50%, Hyundai Motor up 2.80%, and other stocks’ gains also reduced.

Samsung Electronics and SK Hynix have recently continued to rise and repeatedly hit new highs, related to news of rising storage chip prices. Recently, foreign media reported that Samsung Electronics is negotiating the price of its latest AI storage chip, HBM4, which will be 20-30% higher than the previous generation, around $700. SK Hynix, which is about to start mass production of HBM4, is also expected to set its price at the same level.

Saxo Markets Chief Investment Strategist Charu Chanana said that the reports about Samsung’s HBM4 again highlight the industry’s “pricing power,” indicating that supply of AI storage chips remains tight.

According to reports, in response to the surge in demand for memory chips driven by AI, South Korea’s two major memory giants, Samsung Electronics and SK Hynix, are accelerating the production of new wafer fabs, shifting their strategic focus from cautious inventory control to active expansion to seize the “super cycle” industry benefits.

SK Hynix plans to bring forward the trial operation of its Yongin Phase 1 wafer plant to February-March next year, starting before the completion date. Samsung Electronics also moved up the production start of its Pyeongtaek P4 plant from Q1 next year to Q4 this year, advancing the schedule by about three months. Both companies will focus on high-value-added products on new lines, such as high-performance DRAM and HBM (High Bandwidth Memory).

Recently, the U.S. Semiconductor Industry Association (SIA) stated that driven by continued AI-related investments, global semiconductor sales could surpass $1 trillion for the first time this year, maintaining strong growth momentum. SIA forecasts that global chip sales will reach $791.7 billion in 2025, a significant 25.6% increase from the previous year. As major global tech companies continue to invest hundreds of billions of dollars in expanding AI data centers, related demand is expected to further boost the chip market this year.

(Source: Securities Times)