South Korean chipmakers' factory exports fell in July for the first time in nearly three years, highlighting that demand is weakening, according to a report on Singapore's Union-Tribune website on 31 July.

　　Citing Bloomberg, the report said semiconductor exports fell 22.7 percent year-on-year in July after rising 5.1 percent in June, according to a data released by the Korea Statistics Agency on 31. inventories remained at a high level in July, up 80 percent year-on-year and unchanged from the previous month.

　　Chip production also slowed for the fourth consecutive month in July, indicating that major producers are adjusting output to reflect cooling demand and rising inventories, the report said.　　

　　The report noted that weakening chip sales momentum has added to the gloomy global economic outlook. Semiconductors are a key component for a global economy that is increasingly dependent on electronics and online services. Demand for chips surged during the epidemic as many people turned to remote work and education to minimize the risk of contracting the virus.

　　The report suggests that the drop in semiconductor exports helps explain South Korea's first technology export decline in more than two years, recorded in July. While South Korea's overall exports rose 9.4 percent in July, overseas sales of memory chips fell 13.5 percent.

　　A Citigroup analyst warned that the global semiconductor industry is entering its worst downturn in 10 years, and predicted that demand for the chip segment could fall another 25%.

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