(MENAFN) South Korea reduced its reliance on China for Semiconductor exports last year, while increasing shipments to Taiwan and Vietnam, according to industry data released yesterday.

This adjustment aligns with global trends, including escalating US-China competition in the semiconductor sector, rising US demand for AI-related chips, and the relocation of IT production from China.

The Ministry of Trade, Industry, and Energy reported that South Korea’s semiconductor exports surged to a record USD141.9 billion in 2024, marking a 43.9 percent jump from USD98.6 billion in 2023.

Historically South Korea’s largest market, China has seen a decline in its share of Korean semiconductor exports over recent years. Combined with Hong Kong, China accounted for 61.6 percent of South Korean semiconductor shipments in 2020. By the end of 2024, this figure had dropped to 51.7 percent, according to the Korea International Trade Association.

Breaking it down, exports to China decreased from 40.2 percent to 33.3 percent, while Hong Kong’s share fell from 20.9 percent to 18.4 percent.

Notably, the US share effectively increases when including Taiwan, as South Korean high-bandwidth memory supplied to US chipmaker Nvidia is produced in Taiwan.