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Chip, renewable energy sectors set for growth: report

An electronic board showing the Korea Composite Stock Price Index (KOSPI) at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)
An electronic board showing the Korea Composite Stock Price Index (KOSPI) at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)
The chip, renewable energy and entertainment industries are set to grow next year, auditing firm Samjong KPMG said Monday in its annual industry forecast report for 24 industries.

The supply of system chips will improve as production expands while sales of memory chips next year will not be as strong as this year, because of oversupply, the report said, noting that the South Korean government should work with local chipmakers like Samsung Electronics to localize parts for chip independence.

Samsung Electronics, the world’s top memory chipmaker, is the second-largest contract chip manufacturer looking to expand nonmemory chip investment to challenge its bigger rival TSMC.

The report said demand for renewables would rise as more countries doubled down on their carbon-cutting commitments as demonstrated in the COP26 climate summit held in October. Demand for coal and gas will be sluggish, the report added.

But the rising prices of commodities needed for green projects or “greenflation” will be a concern companies seeking renewable energy will have to address, according to the report.

The report also predicted that the entertainment industry would continue the rally seen this year, saying the local gaming industry should embrace new opportunities offered by digital businesses like metaverse and nonfungible tokens.

Metaverse makes possible a digital world and NFTs, a type of digital asset authenticated by blockchain, help tokenize the new platform. Local gamemaker Wemade recently published games using NFTs.

Meanwhile, the report painted a mixed outlook for 15 sectors including autos, steel, beverages and cosmetics, saying those industries will face both ups and downs.

Shipbuilding and marine industries and display industries will see a downturn next year, according to the report, which pinpointed shrinking orders and demand as the reason behind the fall.

“But all industries will have to deal with uncertainties involving supply chain bottlenecks and fluctuating commodity prices,” the report said.

By Choi Si-young (siyoungchoi@heraldcorp.com)
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