Trend Offshoring of device and component production caps domestic ICT output growth

Summary

The report expects Korea's ICT device sector to grow only modestly through 2030 because more manufacturing is moving abroad. Global AI investment should keep domestic semiconductor capacity in place, but the reorganisation of global supply chains for memory chips, displays and handsets is shifting output to overseas plants. For displays and communication equipment, demand drivers such as OLED adoption in IT products and new AI phones are offset by fiercer global competition, a larger overseas production share and longer replacement cycles. The institute also warns that cost increases caused by stricter trade rules and pressure to redesign production locations have become a core source of anxiety for domestic output and export competitiveness. Offshoring therefore works as a structural drag that keeps rising demand from translating fully into domestic production.