AI-driven semiconductor supercycle fuels logistics boom

Maintenance equipment and spare parts from various global semiconductor equipment manufacturers are stored in a logistics warehouse inside the integrated logistics center in Pyeongtaek, Gyeonggi, on Dec. 9. [LEE GA-RAM]

 
As AI drives up the demand for chips, Korea’s semiconductor factories are running so hard that even high-stakes logistics involving moving ultra delicate, multimillion-dollar equipment have become a booming industry of its own.
 
On Tuesday morning, a logistics warehouse inside the integrated logistics center in Pyeongtaek, Gyeonggi, was filled wall to wall with cargo, from large plywood crates to small parcel boxes — all spread directly on the floor. Unlike most warehouses, no items were stacked.
 

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“That equipment inside the plywood box alone is worth $4 million,” said one warehouse manager, referring to a specific crate. “These goods are not only expensive but also highly sensitive to vibrations, so we avoid stacking them as much as possible.”
 
Industrial heaters also run nonstop to maintain interior warmth to combat the freezing temperatures outside.
 
This warehouse belongs to a logistics company specializing in semiconductors and holds more than 10,000 maintenance equipment and spare parts from global semiconductor equipment manufacturers, including Applied Materials (AMAT) and Axcelis. These are “precious shipments from across the sea” that Samsung Electronics and SK hynix are seeking now more than ever.
 
Fueled by the AI investment boom, the semiconductor market is experiencing a supercycle, and logistics companies are reaping the benefits. With Samsung and SK hynix ramping up fab — or semiconductor factory — operations, the need for maintenance equipment and spare parts has risen sharply. 
 

Wafer transfer robot equipment is stored at Dream Logistics' warehouse in Pyeongtaek, Gyeonggi, on Dec. 9. [LEE GA-RAM]

 
Foreign semiconductor equipment makers typically outsource product transportation through third-party logistics providers in Korea, but when Samsung or SK hynix places an order, logistics firms dispatch parts in storage directly to their fabs. Ilyang Logis, which handles Lam Research parts, saw delivery volume rise by 30 percent compared to last year.
 
“Maintenance parts are often needed urgently, so on-time delivery is critical,” said Kim Byung-seon, the CEO of Dream Logistics, which manages AMAT parts. “Our average daily shipments jumped from 130 to 200 this year, prompting us to hire 20 new employees in August.”
 
Korea’s semiconductor exports remain strong, boosting air cargo volume. Last month, semiconductor exports hit a record high of $17.26 billion, marking nine consecutive months of growth.
 
The volume of air cargo in particular has increased. Since semiconductors are sensitive to humidity and vibrations, airfreight is virtually the only viable transport method.
 
With chip production and exports rising rapidly, FedEx launched its first direct route between Korea and Taiwan in July, with seven flights per week. High bandwidth memory (HBM) chips made from Taiwan's TSMC wafers are packaged with Korean memory products before being re-exported.
 

Engineers are seen at Dutch firm ASML’s headquarters in Veldhoven, Netherlands, on Nov. 20, 2023. [REUTERS/YONHAP]

 
Although semiconductor logistics is a highly valuable sector, it faces many obstacles — especially strict requirements. Logistics providers must meet specific warehouse standards and use vibration-free transport vehicles, and employees must pass background checks to access fabs.
 
Extreme ultraviolet lithography equipment from Dutch firm ASML, imported by Samsung and SK hynix, weighs more than 30 tons per unit and costs several hundred billion won. Specialized deliveries are handled by Haewoo GLS for Samsung and Lotte Logistics for SK hynix.
 
Companies are also adopting advanced technologies. U.S.-based Micron has implemented FedEx’s AI-powered logistics solutions, increasing on-time delivery rates by 27 percent and reducing overall delivery time by 16 percent.
 
“Semiconductor manufacturing spans multiple countries and from production and assembly to testing and packaging,” said a FedEx representative. “That’s why precise data management and swift risk response are critical.”
 

A promotional image for FedEx's first direct route between Korea and Taiwan [FEDEX]

 
“As global supply chains diversify and grow more complex, the demand for smart, quick logistics in the semiconductor industry will only intensify,” the FedEx representative added.
 
Global competition within the semiconductor logistics industry is also heating up. In August, DHL began constructing a dedicated semiconductor logistics center in Chitose, Hokkaido, Japan. The site will support the nearby fab of Rapidus, a public-private foundry venture, as DHL seeks to dominate supply chain logistics for Japanese semiconductors.
 
Qatar Airways also entered the fray in April by launching TechLift, a dedicated transport solution for the semiconductor sector.
 
The global semiconductor equipment logistics market — valued at $3.26 billion last year — is projected to grow by an average of 7.1 percent annually, reaching $6 billion by 2033, according to market research firm Dataintelo.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE GA-RAM [lim.jeongwon@joongang.co.kr]