South Korea chip output falls in February at fastest pace since 2008

Government, major producers continue to invest in semiconductor plants

South Korea has passed legislation called the K-Chips Act to expand incentives for chipmakers setting up new factories in the country. (Source photos by Reuters and AP)

STEVEN BOROWIEC, Nikkei staff writer

March 31, 2023 16:51 JST

SEOUL -- Production of semiconductors in South Korea fell sharply in February, raising questions over the long-term strength of the country's main export and pointing to sluggish economic growth for the rest of the year.

Data released by the country's official statistics agency on Friday showed that production of chips last month declined 17.1% from January, the steepest on-month fall since 2008. The figure was also down 41.8% from the same month last year.