China’s “trade-in” policy has sparked growth in the domestic electronics market, particularly enhancing order volumes for South Korean foundries like DB HiTek and SK Key Foundry. DB HiTek reports a full restoration of production capacity and rising utilization rates. With expectations for continued high operating rates in 2025 and additional gains across the semiconductor sector, these developments suggest a recovery from previous market challenges.
Recent reports indicate that China’s new “trade-in” policy has boosted domestic electronic consumption by providing subsidies for consumers buying electronic devices. This uptick in demand, observed since early 2025, directly supports the semiconductor industry, particularly benefiting South Korean foundries like DB HiTek.
DB HiTek’s operations have notably improved, with its Bucheon plant’s production capacity entirely restored. The combined utilization rate of its Bucheon and Sangwoo facilities has increased significantly to nearly 85%, reflecting a recovery from a lower rate of 74.4% in the third quarter of 2024.
Expectations for 2025 predict that DB HiTek will maintain an annual operating rate above 85%, indicative of the semiconductor market’s resurgence. Notably, the utilization rate recovery emerged after a challenging 2024, during which DB HiTek recorded a 26.52% drop in operating profit, equating to approximately 195 billion KRW.
Additionally, other South Korean semiconductor companies are also experiencing increased activity due to the trade-in policy. SK Key Foundry has reported its utilization rate surpassing 80%, fueled by rising orders from fabless companies in the U.S. and Europe supplying components to China.
Samsung Electronics’ foundry division is also on the mend, having resumed operations after a recent pause. Plans are in place to ramp up production at its Pyeongtaek facility by June, primarily driven by growing demand for Exynos processors and increasing orders from China’s cryptocurrency mining sector.
The introduction of China’s trade-in policy has revitalized South Korean semiconductor foundries, marked by significant increases in production capacity and utilization rates. DB HiTek and SK Key Foundry are among those reaping the benefits, with DB HiTek forecasting sustained high operating rates for 2025. Overall, this trend signals a positive recovery trajectory for the semiconductor market after recent downturns.
Original Source: www.trendforce.com
