South Korea's Chipmaking Sector Tops 10% of Manufacturing Output in 2024

According to Yonhap, South Korea's semiconductor sector accounted for 10.1% of the country's total manufacturing output in 2024, as production rose to 210.8 trillion won ($143.9 billion) on stronger AI infrastructure demand after the launch of ChatGPT. The Bank of Korea said the chipmaking industry became the country's largest manufacturing sector last year, ahead of steelmaking at 8.7% and oil refining at 8.5%. In value-added terms, semiconductors made up 16.7% of manufacturing in 2024, while representing 5% of manufacturing employment and 0.7% of manufacturing companies. The central bank said AI-related demand has reshaped the sector, with investment in data centers and AI computing infrastructure climbing sharply since late 2022 and South Korean chipmakers adjusting production and investment to match the global trend. It added that the figures are expected to rise significantly in 2026, supported by the ongoing semiconductor supercycle benefiting Samsung Electronics Co. and SK hynix Inc.