South Korea’s wafer foundries are seeing a resurgence, driven by China’s soaring electronics demand, according to Commercial Daily News on February 14. In 2024, China introduced a "trade-in" subsidy program to boost consumer spending, leading to a sharp rise in electronic device sales since early 2025. As a result, DB HiTek’s Bucheon plant is now fully operational, with its combined fab utilization rate climbing to nearly 85%, up from 74.4% in 3Q 2024, according to BusinessKorea. The company expects strong demand from China to sustain utilization above 85% throughout 2025.

SK Key Foundry, another 8-inch wafer foundry, has seen utilization exceed 80%, fueled by increasing orders from U.S. and European fabless semiconductor firms. As these companies reintegrate China into their supply chains, South Korean foundries are regaining momentum, signaling a broader rebound from the 2024 semiconductor downturn.

Meanwhile, according to Market Intelligence & Consulting Institute (MIC), the global semiconductor market is expected to maintain steady growth between 2025 and 2028, driven by recovering demand in consumer electronics, automotive, and industrial applications. Foundry utilization rates are set to rise in 2025, with TSMC continuing to lead in advanced nodes. TSMC’s sub-7nm process revenue share grew from 67% in 2Q 2024 to 69% in 3Q, while High-Performance Computing (HPC) applications accounted for 51% of the company’s foundry revenue, reflecting the market’s strong demand for high-end computing chips, MIC added.