Chipmaking accounts for over 10% of Korea's manufacturing output in 2024: BOK

This undated file photo, provided by SK hynix, shows its production facilities in Icheon, Gyeonggi Province. Courtesy of SK hynix

Korea's chipmaking sector accounted for more than 10 percent of the country's manufacturing output in 2024 driven by growing demand for artificial intelligence (AI) infrastructure following the advent of ChatGPT, a central bank report showed Monday.

The semiconductor sector's production reached 210.8 trillion won ($143.9 billion) in the one-year period, making up 10.1 percent of the country's total manufacturing output, according to a report published by the Bank of Korea (BOK).

The sector became the country's largest manufacturing industry in 2024, followed by steelmaking with an 8.7 percent share and oil refining with 8.5 percent.

In the previous survey conducted in 2019, semiconductors ranked second with an 8.7 percent share, behind steelmaking at 9.7 percent.

In terms of value added, the chipmaking sector accounted for 16.7 percent in 2024 while representing 5 percent of manufacturing employment and 0.7 percent of manufacturing companies.

The BOK said AI-related demand has reshaped Korea's semiconductor industry.

"Since the end of 2022, when ChatGPT emerged, investment in data centers and AI computing infrastructure has increased sharply, and the global semiconductor supply chain has undergone AI-driven reorganization," the BOK said.

"Korean chipmakers have adjusted their production and investment in line with this global trend."

The central bank added that the figures are expected to rise significantly in 2026, supported by the ongoing semiconductor supercycle that has benefited the country's two major memory chipmakers, Samsung Electronics Co. and SK hynix Inc.