ELECTRONICS NEWS HIGHLIGHT W4.2024
1. South Korea’s memory exports increase 58% by December 2023
According to a report from the Ministry of Trade, Industry and Energy, South Korea’s memory chip exports increased 58% in December 2023 compared to the same period in 2022, the largest increase since May 2018.
The boom in memory chip exports represents unprecedented growth in this important sector. Applications in Information and Communications Technology are believed to be the main driver of this growth. Considering South Korea’s total information and communications technology (ICT) exports reached $18.26 billion in December 2023, reflecting an increase of 8.1% year-on-year. This shows that the world market’s demand for information technology applications is increasing sharply, while also affirming Korea’s position in the field of memory chip manufacturing.
On the contrary: While memory chips soared, system chip exports, including logic and analog devices, saw a notable decline of 14%. This decline is attributed to factors such as reduced operating speeds in wafer foundries.
2. SEAJ: Sales of semiconductor manufacturing equipment in Japan expected to increase 27% in fiscal 2024
The Japan Semiconductor Association (SEAJ) forecasts that Japan’s semiconductor equipment sales are expected to increase 27% in fiscal 2024 to reach 4.03 trillion yen (about 27 billion USD).
SEAJ, whose members include Tokyo Electronics, Advantest and Screen. They expect a recovery in wafer foundries and logic chip makers in the second half of fiscal 2023. It is expected that the average compound annual growth rate will continue to remain at 10% in March year 2026.
The SEAJ President said that besides the manufacturing market, the semiconductor device market for AI applications is also on the rise, creating sustainable momentum for increased production in Japan.
3. The market for electronic parts and repairs is booming
The demand for spare parts and repairs of electrical and electronic products is growing explosively around the world, with economic advantages for users, and support from the government.
For electronic component products, especially batteries, loss of performance over time is common. However, with proper replacement and repair, electronic devices can work as well as new. This gradually became popular when many spare parts and repair companies realized the potential of this market. Customers who successfully replace and repair easily become loyal customers when they see that repair costs help them save up to 90% of the cost of buying a new product.
Besides the economic factor, when a device is repaired, it will continue to use the resources invested in the production process, helping to conserve finite resources, e.g. Rare earth metals and precious metals, essential for the production of electronic devices. This helps protect the environment and save natural resources.
In the United States, there are currently several right-to-repair bills in place. A bill, the Right to Repair Act of 2023, was introduced in the House of Representatives in April 2023. The bill would require electronics manufacturers to provide repair instructions, replacement parts, and Diagnostic tool for independent repairers and consumers.
With all the above advantages, the global consumer electronics repair and maintenance market is expected to grow from USD 8.43 billion in 2022 to USD 9.64 billion in 2027 at a CAGR of 2, 5%.