South Korea’s chip shipments plunged 22.7% in July, the first drop in nearly three years

Data map (from: Samsung)

Chip production slowed for fourth straight month in July, suggestingSamsungMajor producers such as electronics and SK hynix are adjusting production in response to cooling demand and rising inventories.

The waning momentum in South Korean chip sales further added to the gloomy outlook for the global economy. Semiconductors are critical components in a global economy that is increasingly reliant on electronics and online services. During the pandemic, as many people turn to remote work and remoteeducate, the demand for chips has surged.

The drop in semiconductor shipments partly explained South Korea’s July drop in tech exports. Statistics released by South Korea’s Ministry of Science, Technology, Information and Communications last month showed that exports of information and communications technology (ICT) fell 0.7 percent year-on-year in July, with exports of memory chips down 13.5 percent.