As China overtakes chip tech, politics dawdles
Published: 24 Feb. 2025, 00:00
China’s overtaking in semiconductor technology has become a reality. According to a survey conducted by the Korea Institute of Science and Technology Evaluation and Planning among 39 domestic experts, as of last year, Korea’s semiconductor technology level has largely been overtaken by China in just two years. In the basic capability areas of five key technologies — memory, advanced packaging, AI semiconductors, power semiconductors and high-performance sensors — China now holds the edge in four, with the exception of advanced packaging, where Korea managed to barely fend off the overtaking by tying with China for fourth place.
The survey results are nothing short of shocking. In memory and high-performance sensor technologies — fields in which Korea had led two years ago — China has now surged ahead, while Korea’s once-leading advanced packaging technology has been eroded by China’s rapid catch-up. In the foundational capabilities of AI semiconductors and power semiconductors, where Korea was already trailing two years ago, the gap with China has failed to narrow. Moreover, when evaluating technology levels from a commercialization perspective, Korea’s semiconductor prowess outpaced China only in memory and advanced packaging.
The crisis in Korean semiconductor competitiveness is further underscored by another set of figures. In a survey assessing the technology life cycle across the entire semiconductor sector, Korea only managed to lead China in fabrication processes and mass production. In the realms of fundamental research, core technology and design, Korea not only lagged behind China but also ranked last — sixth among competitors including the United States, Taiwan and Japan. And if that weren’t enough, Japan, rallying under the banner of a semiconductor resurgence, is aggressively closing the gap. Japanese memory semiconductor company Kioxia has, for the first time in the world, developed a 332-layer NAND flash, outpacing Korea in the race for advanced stacking technology. Even Japan’s semiconductor efforts are now drawing perilously close to Korea’s doorstep.
The semiconductor crisis is a red flag for the Korean economy. Semiconductors, a pillar industry accounting for 20.8 percent of exports — the engine of Korea’s economy as of 2024 — are critical. If the semiconductor front wavers, both exports and the broader economy are bound to suffer. Furthermore, semiconductor technology not only drives innovation across industries but is also intrinsically linked to national security. In the field of advanced semiconductors, where entry barriers are high, an ever-widening technological gap will only make it increasingly difficult to catch up, thereby undermining national competitiveness.
Amid the emergence of a second Trump administration and other mounting challenges, the situation surrounding Korea’s semiconductor industry is growing increasingly dire. The all-out, nationwide semiconductor competition — including the race to secure advanced semiconductor technology — is intensifying. Yet, despite the urgent need for companies, the government and political leaders to join forces to restore semiconductor competitiveness, the conduct of the political sphere has been nothing short of dismal.
Lawmakers failed to pass the Semiconductor Special Act, which includes an exemption for research and development (R&D) from the 52-hour workweek rule. As Ryu Jin, president of the Korea Economic Association, noted, “The Advanced Industries Promotion Bill is stranded in the National Assembly.” The golden window to boost Korea’s already lagging semiconductor competitiveness is rapidly closing. Should this opportunity be lost, it is vital to remember that not only semiconductors but the entire Korean economy could fall behind in the global competition.
Translated using generative AI and edited by Korea JoongAng Daily staff.
The survey results are nothing short of shocking. In memory and high-performance sensor technologies — fields in which Korea had led two years ago — China has now surged ahead, while Korea’s once-leading advanced packaging technology has been eroded by China’s rapid catch-up. In the foundational capabilities of AI semiconductors and power semiconductors, where Korea was already trailing two years ago, the gap with China has failed to narrow. Moreover, when evaluating technology levels from a commercialization perspective, Korea’s semiconductor prowess outpaced China only in memory and advanced packaging.
The crisis in Korean semiconductor competitiveness is further underscored by another set of figures. In a survey assessing the technology life cycle across the entire semiconductor sector, Korea only managed to lead China in fabrication processes and mass production. In the realms of fundamental research, core technology and design, Korea not only lagged behind China but also ranked last — sixth among competitors including the United States, Taiwan and Japan. And if that weren’t enough, Japan, rallying under the banner of a semiconductor resurgence, is aggressively closing the gap. Japanese memory semiconductor company Kioxia has, for the first time in the world, developed a 332-layer NAND flash, outpacing Korea in the race for advanced stacking technology. Even Japan’s semiconductor efforts are now drawing perilously close to Korea’s doorstep.
The semiconductor crisis is a red flag for the Korean economy. Semiconductors, a pillar industry accounting for 20.8 percent of exports — the engine of Korea’s economy as of 2024 — are critical. If the semiconductor front wavers, both exports and the broader economy are bound to suffer. Furthermore, semiconductor technology not only drives innovation across industries but is also intrinsically linked to national security. In the field of advanced semiconductors, where entry barriers are high, an ever-widening technological gap will only make it increasingly difficult to catch up, thereby undermining national competitiveness.
Amid the emergence of a second Trump administration and other mounting challenges, the situation surrounding Korea’s semiconductor industry is growing increasingly dire. The all-out, nationwide semiconductor competition — including the race to secure advanced semiconductor technology — is intensifying. Yet, despite the urgent need for companies, the government and political leaders to join forces to restore semiconductor competitiveness, the conduct of the political sphere has been nothing short of dismal.
Lawmakers failed to pass the Semiconductor Special Act, which includes an exemption for research and development (R&D) from the 52-hour workweek rule. As Ryu Jin, president of the Korea Economic Association, noted, “The Advanced Industries Promotion Bill is stranded in the National Assembly.” The golden window to boost Korea’s already lagging semiconductor competitiveness is rapidly closing. Should this opportunity be lost, it is vital to remember that not only semiconductors but the entire Korean economy could fall behind in the global competition.
Translated using generative AI and edited by Korea JoongAng Daily staff.
with the Korea JoongAng Daily
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