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Demand for chips from Korean chip foundries manufacturers such as Samsung, DB Hitek, Key Foundry, Magnachip and SK Hynix System IC has declined as a result of the slump in demand for consumer electronics.

In early December 2022, foreign media had reported that the capacity utilization rate of a number of Korean foundries fell sharply, with the exception of Samsung Electronics.

Today, the Korean media said that for 8-inch wafers, Samsung, DB Hitek and Key Foundry’s start-up rate is between 60% and 70%. But for 12-inch wafers, Samsung’s 12-inch fab start-up rate remains at about 80%.

Currently, Samsung has five semiconductor fabs in South Korea, located in Gyeosung, Hwaseong, Pyeongtaek, Onyang and Cheonan. In addition, the company operates three chip factories in Suzhou, Tianjin and Xi’an, as well as one chip factory in Austin, Texas, USA.

Samsung’s rivals have scaled back investments due to falling demand and a glut of chips. But Samsung said in October 2022 that it would not intentionally cut chip production, contrary to an industry-wide trend of cutting output to meet medium- to long-term demand.

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