Shares of chipmakers in South Korea hit a 26-year high
South Korea’s statistics office said today that the country’s chipmaker stocks rose to their highest level in nearly 26 years in January 2023, reflecting a slowdown in global demand amid economic uncertainty in January this year, the highest since 288.7 percent. registered in March 1997.
A higher ratio generally indicates that companies are facing more barriers to selling their products, although this can increase as companies stockpile large batches of products. A higher ratio may also encourage chipmakers to reduce production or cut prices to maintain sales.
Exports of semiconductors, the country’s main export, fell 42.5% to $5.96 billion in February from a year earlier amid a downturn in the semiconductor industry.
Due to South Korea’s heavy reliance on chip manufacturing, its exports fell for the fifth consecutive month in February this year, falling 7.5% year-on-year to $50.1 billion.