Electronics

South Korean chipmakers suffered their first drop in factory shipments in nearly three years in July, underscoring weak demand for semiconductors, a barometer of the global economy. Prior to this, factors such as the epidemic impacted international trade, which once led to tight global chip supply and created a period of industrial prosperity.

The country's semiconductor shipments fell 22.7 percent in July from a year earlier, after rising 5.1 percent in June, according to a statement released by the National Bureau of Statistics on Wednesday. In July, South Korea's national semiconductor inventory remained high, up 80% from the same period last year, unchanged from the previous month. In today's global chip supply chain, Asian manufacturers such as TSMC and Samsung Electronics play an important role.

South Korea's chip production slowed for a fourth straight month in July, data showed, suggesting major producers such as Samsung and SK Hynix are adjusting output to reflect cooling demand and rising inventories. Semiconductors are a key component in a world economy that is increasingly reliant on electronics and online services. During the pandemic, many people turned to telecommuting and remote education to minimize the risk of infection, leading to a surge in demand for chips.