Korean Media: China Accelerates Semiconductor Self-Sufficiency, the "Golden Era" of South Korea is Coming to an End!
On December 18, the Korean media, Chosun Ilbo, published an article stating that with China's semiconductor technology self-reliance process exceeding expectations, members of the National Assembly and industry experts have issued warnings, believing that the South Korean semiconductor industry may face structural pressures in the coming years. Although the popularity of artificial intelligence (AI) has brought short-term momentum, analysts predict that if China accelerates its domestic production strategy, the gap between the two countries could shrink significantly as early as 2027.
Recently, during a research meeting held by the National Assembly, a report assessed the expansion speed of China's semiconductor ecosystem as "far beyond expectations." Park Byung-rye, director of the Korea-China Economic and Financial Institute, said at the report release that "U.S. sanctions have actually accelerated China's development, and China is making semiconductors a strategic industry." Regarding China's leading tech company Huawei, he explained, "They are building a semiconductor carrier structure that connects materials, design, optoelectronics, and software."
Chinese enterprises' investment and development pace is also accelerating. The largest NAND flash memory manufacturer in China, Yangtze Memory Technologies, recently launched construction of its third semiconductor factory in Wuhan to expand capacity. Despite challenges in obtaining advanced lithography equipment due to U.S. sanctions, Yangtze Memory is reducing production disruptions by introducing domestic equipment. Storage semiconductor company Longxin Memory has also completed the development of the fourth generation of high-bandwidth memory (HBM3) and provided samples to Huawei, planning mass production starting next year. South Korean industry insiders believe that China's "Big Fund" has accelerated Longxin Memory's process of narrowing the technological gap.
South Korean industry forecasts also show similar concerns. A recent survey conducted by the Korea Economic Association on 100 companies found that China's industrial competitiveness has already surpassed South Korea this year and is predicted to reach a level close to that of the United States within five years. In some industries such as steel, machinery, batteries, displays, and automotive parts, China's competitiveness has been evaluated as surpassing South Korea, while the gap in semiconductors and electronics has narrowed to a very small extent. Particularly noteworthy is that many respondents predicted that by 2030, China is likely to surpass South Korea in all key industries, including semiconductors. Within the semiconductor industry itself, some even speculate that "China's memory companies' HBM technology may reach South Korea's level within two to three years."
Experts point out that it is now necessary to take measures beyond mere technological competition and instead adopt a "national strategy." They believe that unless the government directly supports the semiconductor industry and manages the supply chain, South Korea is likely to fall behind in the global competition of the AI era.
Experts say that from this year to 2027 is the "last golden period" for South Korea's semiconductor industry. Although the current popularity of AI has driven a surge in demand for memory, which is favorable for South Korean companies, if China achieves a certain level of technological self-sufficiency, South Korea's export structure may be impacted. Park Byung-rye said, "Unless the South Korean government and companies work together to define the semiconductor industry as a national security industry, we will not be able to lead the next development cycle."
Original: toutiao.com/article/1851834653763592/
Statement: This article represents the views of the author.