Dublin, Jan. 05, 2026 (GLOBE NEWSWIRE) -- The "Korea Semiconductor Device Market Report by Product Type, Material, End Use and Company Analysis, 2025-2033" has been added to ResearchAndMarkets.com's offering.
The Korea Semiconductor Device Market is projected to reach US$ 39.17 billion by 2033, up from US$ 21.45 billion in 2024, with a CAGR of 6.92% from 2025 to 2033. This growth is primarily driven by strong worldwide demand for memory chips, increased investments in AI and 5G technologies, and government support for semiconductor innovation to maintain Korea's edge in producing and exporting advanced chips.
Key Factors Driving Korea's Semiconductor Device Market Growth
Global Memory Chip Demand: South Korea commands the world market for memory chips, supplying a significant amount of DRAM and NAND flash used in diverse devices, including servers, smartphones, and laptops. The global digital transformation, driven by technologies like AI, IoT, and 5G, boosts demand for high-capacity, high-speed memory chips. Korean giants like Samsung and SK Hynix lead this market with advanced technology and mass production capabilities. As digital data volumes surge, cloud computing, hyperscale data centers, and edge devices further fuel the need for efficient memory solutions, maintaining memory chips as a key revenue source and growth driver for Korea's semiconductor industry.
Government Support for Policies and Investments: Acknowledging the critical role of semiconductors in technological leadership and economic resilience, the Korean government has prioritized their development. This involves significant measures like tax breaks, R&D subsidies, infrastructure investments, and long-term strategies such as the "K-Semiconductor Belt" initiative. These efforts aim to boost domestic chip production, attract foreign investment, and foster innovation in cutting-edge semiconductor technologies, including AI chips and next-gen logic devices. Government-backed entities also cooperate with academia and private firms to address the industry's talent gap and enhance its ecosystem. This strong public-private collaboration helps Korean companies remain competitive globally, even as other countries invest heavily in localizing semiconductor production and building self-reliant chip ecosystems.
Development of Emerging Technologies (EVs, 5G, AI): Emerging technologies such as AI, 5G networks, autonomous cars, and IoT are significantly increasing the demand for advanced semiconductor devices. These technologies require high-performance processors that can efficiently process complex data, analyze it promptly, and manage power consumption. Korean companies are shifting from a traditional focus on memory to develop tailored chips and system semiconductors that meet these needs. For instance, Samsung is investing heavily in AI-centric processors and foundry services. By advancing digital transformation across sectors like industrial automation, healthcare, and automotive, Korea ensures its technological leadership and long-term global semiconductor market relevance.
Challenges in the Korea Semiconductor Device Market
Geopolitical Risks and Supply Chain Dependence: The South Korean semiconductor industry faces significant exposure to geopolitical tensions, especially between China, the U.S., and Japan. Export restrictions, trade conflicts, and changes in diplomatic ties can disrupt supply chains or limit access to essential materials and technologies. Historical tensions with Japan, for instance, affected the supply of critical inputs like photoresists and etching gases. Korea's heavy reliance on international markets for raw materials and end-product demand makes the sector vulnerable to global shocks. Moreover, global efforts to localize semiconductor supply chains could diminish Korea's global market share. Addressing these challenges requires diversifying supply sources, cultivating strategic partnerships, and boosting domestic production of crucial components and technologies.
Talent Shortage and R&D Pressure: Despite technological progress, Korea grapples with a shortage of skilled professionals in semiconductor engineering, design, and research. The rapid pace of innovation in areas such as AI chips, quantum computing, and advanced lithography demands a well-trained workforce. However, the educational system struggles to meet industry demands, particularly in specialized fields like chip architecture and fabrication. This talent gap could restrict Korea's capacity to lead in next-gen semiconductor development. Furthermore, the pressure to continually innovate and reduce time-to-market places a heavy R&D burden on companies. To maintain competitiveness, Korean firms need to prioritize talent development, foster international cooperation, and invest in advanced research infrastructure to sustain ongoing innovation.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2024-2033 |
| Estimated Market Value (USD) in 2024 | $21.45 Billion |
| Forecasted Market Value (USD) by 2033 | $39.17 Billion |
| Compound Annual Growth Rate | 6.9% |
| Regions Covered | South Korea |
Key Topics Covered
1. Introduction
2. Research & Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. Korea Semiconductor Device Market
5.1 Historical Market Trends
5.2 Market Forecast
6. Market Share Analysis
6.1 By Product Type
6.2 By Material
6.3 By End Use
7. Product Type
7.1 Discrete Semiconductors
7.2 Optoelectronics
7.3 Sensors
7.4 Integrated Circuits
7.5 Others
8. Material
8.1 Silicon (Si)
8.2 Silicon Carbide (SiC)
8.3 Gallium Nitride (GaN)
8.4 Gallium Arsenide (GaAs)
8.5 Others
9. End Use
9.1 Networking & Communications
9.2 Data Processing
9.3 Industrial
9.4 Consumer Electronics
9.5 Automotive
9.6 Government
10. Value Chain Analysis
11. Porter's Five Forces Analysis
11.1 Bargaining Power of Buyers
11.2 Bargaining Power of Suppliers
11.3 Degree of Rivalry
11.4 Threat of New Entrants
11.5 Threat of Substitutes
12. SWOT Analysis
12.1 Strength
12.2 Weakness
12.3 Opportunity
12.4 Threat
13. Pricing Benchmark Analysis
14. Key Players Analysis
14.1 Samsung Electronics Co. Ltd.
14.2 SK Hynix Inc.
14.3 Rebellions Inc.
14.4 FuriosaAI
14.5 Micron Technology Inc.
14.6 Texas Instruments Inc.
14.7 ON Semiconductor Corp.
14.8 Infineon Technologies AG
14.9 STMicroelectronics N.V.
14.10 Renesas Electronics Corp.
For more information about this report visit https://www.researchandmarkets.com/r/vx4iar
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
