Amid growing concerns over the state of the semiconductor sector, industry insiders and experts project that demand for chips will recover in the latter half of the year.

According to a government official on Friday, this forecast was voiced during a Wednesday meeting held between Vice Finance Minister Lee Ho-seung and officials from the country's top two chipmakers Samsung Electronics and SK Hynix as well as civic experts and members of related organizations.

Participants of the meeting mostly agreed that market demand for chips will recover in the second half while some were more pessimistic, predicting a recovery in next year's first quarter.

Industry officials also assessed that current market conditions for semiconductors are not so good as the end of last year.

The latest government and industry meeting was held two months after the previous one in November.

A government official said the government is closely monitoring the situation and the meeting was held to obtain a better understanding of the market situation.