Korean Semiconductor Sales to China Plunge

US sanctions on advanced chip exports to China hit the South Korean semiconductor industry in the first two months of 2025. Sales to mainland China fell by nearly a third in February.

Data from South Korea’s Ministry of Trade, Industry and Energy showed chip exports to China dropped 31.8% YoY last month to nearly $4 billion after falling 22.5% to $5.6 billion in January. The decline was attributed to new US restrictions imposed in December 2024 impacting China-bound shipments of high bandwidth memory chips. South Korea-based SK Hynix and Samsung dominate the global HBM market.

The US Department of Commerce’s Bureau of Industry and Security amended its export regulations, adding new controls for certain advanced computing items, supercomputers, and semiconductor manufacturing equipment. A rise in exports to other countries made up for most of the decline in China in February, with total chips sales down just 3% year-on-year, the newspaper added. In January, SK Hynix forecasted demand for HBM and high-density server chips to continue to rise as companies boost investment in AI platforms after its revenue doubled in 2024.