South Korea Ethernet PHY Chip Market

South Korea Ethernet PHY Chip Market Size Report – In a Glance

As per the survey report on South Korea ethernet PHY chip market, the market is expected to foresee a CAGR value of 9.5% during 2025-2035, and further generate a market size of USD 1068.7 million by the end of 2035. In 2025, the market size was value at USD 405.7 million revenue.

• The South Korea ethernet PHY chip market’s growth is driven by government supporting development 5G infrastructure.
• KDMI analyst’s growth analysis foresees rising demand for consumer electronics and IoT devices as the growth drivers for South Korea ethernet PHY chip market.

South Korea Ethernet PHY Chip Market Analysis

An Ethernet PHY (Physical Layer) Chip is an integrated circuit that serves as medium between a digital network system and physical Ethernet cable. This chip performs task of sending and receiving data by encoding digital frames into analog signals for transmission. The PHY is responsible for handling physical transmission aspects like modulation, clock recovery, auto-negotiation, and connection maintenance with physical network source. The South Korea Ethernet PHY Chip market growth is driven by the government supporting the development of 5G infrastructure and growing demand for effective analog integrated chips for fast data transfer. South Korea is the leading country in the memory chip fabrication and in 2024, the semiconductor exports were accounted for USD 141.9 billion, indicating a 43.9% year-on-year growth, which contributes to the growing demand for ethernet PHY chip products. Samsung electronics, LG electronics, and SK Hynix are some of the significant participants in the South Korea ethernet PHY chip market.

South Korea Ethernet PHY Chip Market Growth Drivers and Restraints

Growth Drivers

• Rapid Expansion of data centers and 5G infrastructure – The South Korea ethernet PHY chip market is influenced by expansion of data centers in the country and development of 5G infrastructure. The country is the recognized leader in the market for adopting advanced telecom ecosystem and is the top country in integrating 5G services in every sector. Due to the expansion of 5G infrastructure, the country has created greater opportunities for telecom industries like SK telecom and KT telecom, which drives the growing demand for efficient wired communication infrastructure. Ethernet PHY chips are high-quality and high-speed integral signals that are used in data centers, organizations, and companies to improve efficiency of data by offering low-latency, stable network for data transfer, and other required equipment. Data centers require high-bandwidth Ethernet PHY chips to manage their work effectively, and emphasizes companies to adopt advanced solutions.
• Rising demand for consumer electronics and IoT devices – The South Korean electronic market is growing with the increasing demand for consumer electronic products and IoT devices to effectively manage data transfer and storage system. Ethernet PHY chip being widely applied in electronic products such as smart TVs, gaming products, set-top boxes, and other home networking products to ensure high-speed wired connection to support wireless connectivity. Also, the growing innovation in IoT sector, the demand for smart manufacturing systems by deploying sustainable components like Ethernet PHY chips to enhance industry reliability and efficiency, this contributes to the market growth.

Restraints

• High competition and pricing pressure – The market faces challenge due to highly-competitive market and the high costs associated with deploying ethernet PHY chips into organizations and data centers to manage data transferability and storage. And, the deployment of Ethernet PHY chips requires continuous research and development to support latest trend and standards, increases cost for organizations and companies. Highly competitive market makes implementing procedure complex, and pricing pressure puts burden on finances of companies, all of these factors discourage companies to deploy such advanced system in their network. This limits the market growth.

South Korea Ethernet PHY Chip Market Segmentation

Our experts at KD Market Insights have segmented the South Korea ethernet PHY chip market research report as:

South Korea Ethernet PHY Chip Market Competitive Landscape

Some of the significant participants who top the South Korea ethernet PHY chip market share:

• Samsung Electronics
• LG Electronics
• SK Hynix
• Telechips Inc
• Nextchip Co., Ltd
• Abov Semiconductor Co