South Korea’s Nand flash memory chip exports return to growth

South Korea’s exports of Nand flash memory rose for the first time in a year, adding to evidence that the slump in semiconductor demand is bottoming out.

Shipments increased 5.6% from a year earlier in September, compared with a 8.9% fall in August, the trade ministry said Monday in a release. Exports of dynamic random access memory, the other pillar of the memory-chip market, declined 24.6% in the same period, less than 35.2% a month earlier.

Memory chips are a major driving force for Korean exports which rely heavily on global demand for technology products. While Nand is less lucrative than DRAM, its ability to retain data without power makes it a popular choice among producers of devices such as memory cards, digital cameras and other portable devices.

Korean policymakers are pinning hopes on a revival of chip demand, as they look to shore up economic growth at a time when global interest rates are expected to remain higher for longer, and weigh on overall consumption. Samsung Electronics Co. and SK Hynix Inc. control a major share of the global memory market, while Japanese wafer and equipment suppliers stand to gain from a recovery in semiconductor sales.

Total semiconductor exports to China remained in the doldrums, falling 22.7% from a year earlier in September, the trade ministry data showed. Shipments to the European Union jumped 56.5% while those to the US slid 30.5%.