(Bloomberg) -- South Korea’s semiconductor production fell from a year earlier for the first time in more than a year, in another sign that a boom cycle fueled by artificial intelligence development worldwide may be starting to cool.
Nationwide semiconductor production slid 3% in September, a sharp reversal after they gained 11% a month earlier, according to data released Thursday by the government statistical office. The growth in shipments also slowed to 0.7% from 17% in August.
Still, inventory levels showed stockpiles continue to be worked through at a rapid clip, as they declined 41.5% from a year earlier in September. The numbers paint a picture of an industry that may be cooling gradually as demand for memory chips peaks out.
Separately on Thursday, Samsung Electronics Co. reported earnings that showed its semiconductor division missed market expectations for operating profit, earning just 3.86 trillion won in the third quarter, a result that fell shy of the 6.7 trillion won consensus estimate.
Semiconductors are the biggest drivers of exports and economic growth for South Korea. Their performance is also closely monitored by the Bank of Korea, which began its policy pivot by cutting the benchmark interest rate earlier this month. Some economists expect the easing cycle to accelerate should economic momentum slow more than expected next year.
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