{"id":47676,"topic":"ai","source":"upi.com","title":"AI demand, U.S. tariffs reshape South Korean manufacturing - upi.com","url":"https://www.upi.com/Top_News/World-News/2026/07/27/semiconductors-taiwan-artificial-intelligence/1761785195622/","url_hash":"a73c8d23139b4390339e16a547af498f0fa2b022","author":"","summary":"AI demand, U.S. tariffs reshape South Korean manufacturing upi.com","content":"July 27 (Asia Today) -- Growing artificial intelligence demand and stronger trade barriers are rapidly reshaping the production and supply chains of South Korea's major manufacturing industries, the Bank of Korea said Monday.\nThe central bank said Taiwan has become South Korea's second-largest semiconductor export destination as the AI supply chain draws Korean memory-chip producers closer to Taiwanese manufacturers.\nMeanwhile, South Korean automakers are increasing production in the United States and expanding hybrid vehicle exports as tariffs and U.S. industrial policies make direct exports less competitive.\nThe findings were included in the Bank of Korea's Map of Production and Supply Chains for South Korea's Major Manufacturing Industries. The report used data from 2024 and 2025 to examine 11 industries, including semiconductors, automobiles, steel, shipbuilding and petrochemicals.\nSouth Korean semiconductor exports to Taiwan nearly tripled from $12.78 billion in 2022 to $36.77 billion in 2025.\nTaiwan's share of South Korea's semiconductor exports increased from 9% to 19.9%, moving it from the fourth-largest export destination to the second largest.\nChina remained the largest destination, but its share fell from 53.1% in 2022 to 40.3% in 2025.\nThe central bank attributed the change to a shift in demand from conventional dynamic random-access memory chips to graphics processing units and high-bandwidth memory used in AI systems.\nThe AI semiconductor supply chain generally involves U.S.-based Nvidia designing graphics processors, Taiwan Semiconductor Manufacturing Co. producing and packaging the chips and Samsung Electronics and SK hynix supplying high-bandwidth memory.\nThat structure has increased the volume of South Korean semiconductor products shipped to Taiwan.\nSemiconductors have also become more important to South Korea's overall manufacturing sector.\nDomestic semiconductor production rose from 74 trillion won in 2014 to 210.8 trillion won in 2024 ($50.4 billion to $143.6 billion). Its share of total manufacturing production doubled from 5% to 10.1% during the same period.\nProduction remains heavily concentrated in the greater Seoul area, which accounted for 82.3% of the national total. The Chungcheong region accounted for another 14.7%.\nMajor facilities in the Seoul metropolitan region include Samsung Electronics plants in Hwaseong, Pyeongtaek and Giheung and SK hynix's plant in Icheon.\nChina's growing influence was most apparent in South Korea's automobile import market.\nThe share of vehicle imports from China increased from 3.5% in 2022 to 37.2% in 2025. Chinese-made vehicles accounted for about 70% of South Korea's electric vehicle imports by value in 2025.\nThe report attributed the increase to China's price competitiveness and its extensive supply chain covering vehicles, batteries and components.\nThe United States remained South Korea's largest automobile export market in 2025. Shipments were valued at $30.15 billion and accounted for 41.9% of total finished-vehicle exports.\nHowever, the United States' share of South Korea's electric vehicle exports fell from 33.6% in 2022 to 5.2% in 2025.\nThe central bank said U.S. subsidies, local production requirements and tariff barriers had weakened the competitiveness of electric vehicles manufactured in South Korea and shipped directly to the United States.\nSouth Korean automakers have responded by expanding U.S. factory operations while increasing exports of hybrid vehicles.\nHybrids' share of South Korea's finished-vehicle exports rose from 11.6% in 2022 to 20.4% in 2025.\nThe shift reflects automakers' efforts to respond to slowing electric vehicle demand and insufficient charging infrastructure by offering vehicles that combine electric motors with internal combustion engines.\n-- Reported by Asia Today; translated by UPI\n© Asia Today. Unauthorized reproduction or redistribution prohibited.\nOriginal Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260727010009651","image_url":"https://cdnph.upi.com/sv/ph/og/upi_com/1761785195622/2026/1/e5a177225d5a238dfa55399b1fbb35f4/v1.5/AI-demand-US-tariffs-reshape-South-Korean-manufacturing.jpg","lang":"en","published_at":"2026-07-27T23:45:13+00:00","fetched_at":"2026-07-28T03:15:05+00:00","status":"read","starred":0,"extract_state":"ok","summary_auto":"July 27 (Asia Today) -- Growing artificial intelligence demand and stronger trade barriers are rapidly reshaping the production and supply chains of South Korea's major manufacturing industries, the Bank of Korea said Monday. 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The report used data from 2024 and 2025 to examine 11 industries, including semiconductors, automobiles, steel, shipbuilding and petrochemicals.\nSouth Korean semiconductor exports to Taiwan nearly tripled from $12.78 billion in 2022 to $36.77 billion in 2025.\nTaiwan's share of South Korea's semiconductor exports increased from 9% to 19.9%, moving it from the fourth-largest export destination to the second largest.\nChina remained the largest destination, but its share fell from 53.1% in 2022 to 40.3% in 2025.\nThe central bank attributed the change to a shift in demand from conventional dynamic random-access memory chips to graphics processing units and high-bandwidth memory used in AI systems.\nThe AI semiconductor supply chain generally involves U.S.-based Nvidia designing graphics processors, Taiwan Semiconductor Manufacturing Co. producing and packaging the chips and Samsung Electronics and SK hynix supplying high-bandwidth memory.\nThat structure has increased the volume of South Korean semiconductor products shipped to Taiwan.\nSemiconductors have also become more important to South Korea's overall manufacturing sector.\nDomestic semiconductor production rose from 74 trillion won in 2014 to 210.8 trillion won in 2024 ($50.4 billion to $143.6 billion). Its share of total manufacturing production doubled from 5% to 10.1% during the same period.\nProduction remains heavily concentrated in the greater Seoul area, which accounted for 82.3% of the national total. The Chungcheong region accounted for another 14.7%.\nMajor facilities in the Seoul metropolitan region include Samsung Electronics plants in Hwaseong, Pyeongtaek and Giheung and SK hynix's plant in Icheon.\nChina's growing influence was most apparent in South Korea's automobile import market.\nThe share of vehicle imports from China increased from 3.5% in 2022 to 37.2% in 2025. Chinese-made vehicles accounted for about 70% of South Korea's electric vehicle imports by value in 2025.\nThe report attributed the increase to China's price competitiveness and its extensive supply chain covering vehicles, batteries and components.\nThe United States remained South Korea's largest automobile export market in 2025. Shipments were valued at $30.15 billion and accounted for 41.9% of total finished-vehicle exports.\nHowever, the United States' share of South Korea's electric vehicle exports fell from 33.6% in 2022 to 5.2% in 2025.\nThe central bank said U.S. subsidies, local production requirements and tariff barriers had weakened the competitiveness of electric vehicles manufactured in South Korea and shipped directly to the United States.\nSouth Korean automakers have responded by expanding U.S. factory operations while increasing exports of hybrid vehicles.\nHybrids' share of South Korea's finished-vehicle exports rose from 11.6% in 2022 to 20.4% in 2025.\nThe shift reflects automakers' efforts to respond to slowing electric vehicle demand and insufficient charging infrastructure by offering vehicles that combine electric motors with internal combustion engines.\n-- Reported by Asia Today; translated by UPI\n© Asia Today. 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The report used data from 2024 and 2025 to examine 11 industries, including semiconductors, automobiles, steel, shipbuilding and petrochemicals.\nSouth Korean semiconductor exports to Taiwan nearly tripled from $12.78 billion in 2022 to $36.77 billion in 2025.\nTaiwan's share of South Korea's semiconductor exports increased from 9% to 19.9%, moving it from the fourth-largest export destination to the second largest.\nChina remained the largest destination, but its share fell from 53.1% in 2022 to 40.3% in 2025.\nThe central bank attributed the change to a shift in demand from conventional dynamic random-access memory chips to graphics processing units and high-bandwidth memory used in AI systems.\nThe AI semiconductor supply chain generally involves U.S.-based Nvidia designing graphics processors, Taiwan Semiconductor Manufacturing Co. producing and packaging the chips and Samsung Electronics and SK hynix supplying high-bandwidth memory.\nThat structure has increased the volume of South Korean semiconductor products shipped to Taiwan.\nSemiconductors have also become more important to South Korea's overall manufacturing sector.\nDomestic semiconductor production rose from 74 trillion won in 2014 to 210.8 trillion won in 2024 ($50.4 billion to $143.6 billion). Its share of total manufacturing production doubled from 5% to 10.1% during the same period.\nProduction remains heavily concentrated in the greater Seoul area, which accounted for 82.3% of the national total. The Chungcheong region accounted for another 14.7%.\nMajor facilities in the Seoul metropolitan region include Samsung Electronics plants in Hwaseong, Pyeongtaek and Giheung and SK hynix's plant in Icheon.\nChina's growing influence was most apparent in South Korea's automobile import market.\nThe share of vehicle imports from China increased from 3.5% in 2022 to 37.2% in 2025. Chinese-made vehicles accounted for about 70% of South Korea's electric vehicle imports by value in 2025.\nThe report attributed the increase to China's price competitiveness and its extensive supply chain covering vehicles, batteries and components.\nThe United States remained South Korea's largest automobile export market in 2025. Shipments were valued at $30.15 billion and accounted for 41.9% of total finished-vehicle exports.\nHowever, the United States' share of South Korea's electric vehicle exports fell from 33.6% in 2022 to 5.2% in 2025.\nThe central bank said U.S. subsidies, local production requirements and tariff barriers had weakened the competitiveness of electric vehicles manufactured in South Korea and shipped directly to the United States.\nSouth Korean automakers have responded by expanding U.S. factory operations while increasing exports of hybrid vehicles.\nHybrids' share of South Korea's finished-vehicle exports rose from 11.6% in 2022 to 20.4% in 2025.\nThe shift reflects automakers' efforts to respond to slowing electric vehicle demand and insufficient charging infrastructure by offering vehicles that combine electric motors with internal combustion engines.\n-- Reported by Asia Today; translated by UPI\n© Asia Today. 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The report used data from 2024 and 2025 to examine 11 industries, including semiconductors, automobiles, steel, shipbuilding and petrochemicals.\nSouth Korean semiconductor exports to Taiwan nearly tripled from $12.78 billion in 2022 to $36.77 billion in 2025.\nTaiwan's share of South Korea's semiconductor exports increased from 9% to 19.9%, moving it from the fourth-largest export destination to the second largest.\nChina remained the largest destination, but its share fell from 53.1% in 2022 to 40.3% in 2025.\nThe central bank attributed the change to a shift in demand from conventional dynamic random-access memory chips to graphics processing units and high-bandwidth memory used in AI systems.\nThe AI semiconductor supply chain generally involves U.S.-based Nvidia designing graphics processors, Taiwan Semiconductor Manufacturing Co. producing and packaging the chips and Samsung Electronics and SK hynix supplying high-bandwidth memory.\nThat structure has increased the volume of South Korean semiconductor products shipped to Taiwan.\nSemiconductors have also become more important to South Korea's overall manufacturing sector.\nDomestic semiconductor production rose from 74 trillion won in 2014 to 210.8 trillion won in 2024 ($50.4 billion to $143.6 billion). Its share of total manufacturing production doubled from 5% to 10.1% during the same period.\nProduction remains heavily concentrated in the greater Seoul area, which accounted for 82.3% of the national total. The Chungcheong region accounted for another 14.7%.\nMajor facilities in the Seoul metropolitan region include Samsung Electronics plants in Hwaseong, Pyeongtaek and Giheung and SK hynix's plant in Icheon.\nChina's growing influence was most apparent in South Korea's automobile import market.\nThe share of vehicle imports from China increased from 3.5% in 2022 to 37.2% in 2025. Chinese-made vehicles accounted for about 70% of South Korea's electric vehicle imports by value in 2025.\nThe report attributed the increase to China's price competitiveness and its extensive supply chain covering vehicles, batteries and components.\nThe United States remained South Korea's largest automobile export market in 2025. Shipments were valued at $30.15 billion and accounted for 41.9% of total finished-vehicle exports.\nHowever, the United States' share of South Korea's electric vehicle exports fell from 33.6% in 2022 to 5.2% in 2025.\nThe central bank said U.S. subsidies, local production requirements and tariff barriers had weakened the competitiveness of electric vehicles manufactured in South Korea and shipped directly to the United States.\nSouth Korean automakers have responded by expanding U.S. factory operations while increasing exports of hybrid vehicles.\nHybrids' share of South Korea's finished-vehicle exports rose from 11.6% in 2022 to 20.4% in 2025.\nThe shift reflects automakers' efforts to respond to slowing electric vehicle demand and insufficient charging infrastructure by offering vehicles that combine electric motors with internal combustion engines.\n-- Reported by Asia Today; translated by UPI\n© Asia Today. 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The central bank said Taiwan has become South Korea's second-largest semiconductor export destination as the AI supply chain draws Korean memory-chip producers closer to Taiwanese manufacturers.","source":"upi.com","date":"2026-07-27T23:45:13+00:00","content":"July 27 (Asia Today) -- Growing artificial intelligence demand and stronger trade barriers are rapidly reshaping the production and supply chains of South Korea's major manufacturing industries, the Bank of Korea said Monday.\nThe central bank said Taiwan has become South Korea's second-largest semiconductor export destination as the AI supply chain draws Korean memory-chip producers closer to Taiwanese manufacturers.\nMeanwhile, South Korean automakers are increasing production in the United States and expanding hybrid vehicle exports as tariffs and U.S. industrial policies make direct exports less competitive.\nThe findings were included in the Bank of Korea's Map of Production and Supply Chains for South Korea's Major Manufacturing Industries. The report used data from 2024 and 2025 to examine 11 industries, including semiconductors, automobiles, steel, shipbuilding and petrochemicals.\nSouth Korean semiconductor exports to Taiwan nearly tripled from $12.78 billion in 2022 to $36.77 billion in 2025.\nTaiwan's share of South Korea's semiconductor exports increased from 9% to 19.9%, moving it from the fourth-largest export destination to the second largest.\nChina remained the largest destination, but its share fell from 53.1% in 2022 to 40.3% in 2025.\nThe central bank attributed the change to a shift in demand from conventional dynamic random-access memory chips to graphics processing units and high-bandwidth memory used in AI systems.\nThe AI semiconductor supply chain generally involves U.S.-based Nvidia designing graphics processors, Taiwan Semiconductor Manufacturing Co. producing and packaging the chips and Samsung Electronics and SK hynix supplying high-bandwidth memory.\nThat structure has increased the volume of South Korean semiconductor products shipped to Taiwan.\nSemiconductors have also become more important to South Korea's overall manufacturing sector.\nDomestic semiconductor production rose from 74 trillion won in 2014 to 210.8 trillion won in 2024 ($50.4 billion to $143.6 billion). Its share of total manufacturing production doubled from 5% to 10.1% during the same period.\nProduction remains heavily concentrated in the greater Seoul area, which accounted for 82.3% of the national total. The Chungcheong region accounted for another 14.7%.\nMajor facilities in the Seoul metropolitan region include Samsung Electronics plants in Hwaseong, Pyeongtaek and Giheung and SK hynix's plant in Icheon.\nChina's growing influence was most apparent in South Korea's automobile import market.\nThe share of vehicle imports from China increased from 3.5% in 2022 to 37.2% in 2025. Chinese-made vehicles accounted for about 70% of South Korea's electric vehicle imports by value in 2025.\nThe report attributed the increase to China's price competitiveness and its extensive supply chain covering vehicles, batteries and components.\nThe United States remained South Korea's largest automobile export market in 2025. Shipments were valued at $30.15 billion and accounted for 41.9% of total finished-vehicle exports.\nHowever, the United States' share of South Korea's electric vehicle exports fell from 33.6% in 2022 to 5.2% in 2025.\nThe central bank said U.S. subsidies, local production requirements and tariff barriers had weakened the competitiveness of electric vehicles manufactured in South Korea and shipped directly to the United States.\nSouth Korean automakers have responded by expanding U.S. factory operations while increasing exports of hybrid vehicles.\nHybrids' share of South Korea's finished-vehicle exports rose from 11.6% in 2022 to 20.4% in 2025.\nThe shift reflects automakers' efforts to respond to slowing electric vehicle demand and insufficient charging infrastructure by offering vehicles that combine electric motors with internal combustion engines.\n-- Reported by Asia Today; translated by UPI\n© Asia Today. 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