South Korea has lost its technological edge to China across most semiconductor sectors over the past two years. (Image courtesy of Yonhap)
SEOUL, Feb. 24 (Korea Bizwire) — In a striking reversal, South Korea has lost its technological edge to China across most semiconductor sectors over the past two years, according to a new survey that highlights shifting dynamics in the global chip industry.
The survey, released by the Korea Institute of Science & Technology Evaluation and Planning (KISTEP) in a brief titled “In-depth Analysis of Technology Levels in Three Game-Changer Fields”, found that China now leads South Korea in fundamental technological capabilities across all major semiconductor categories.
When compared against countries with the most advanced technology (rated at 100%), South Korea ranked behind China in several critical areas. In high-density, resistance-based memory technology, South Korea scored 90.9% compared to China’s 94.1%. In high-performance, low-power AI semiconductor technology, South Korea reached 84.1% while China achieved 88.3%.
The gap was even more pronounced in power semiconductors, where South Korea scored 67.5% compared to China’s 79.8%. In next-generation high-performance sensing technology, South Korea rated 81.3% versus China’s 83.9%. The two countries were only equal in advanced semiconductor packaging technology, both scoring 74.2%.
From a commercialization perspective, South Korea maintained its lead over China in just two areas: high-density memory technology and advanced semiconductor packaging.
The findings represent a significant shift from the 2022 assessment, when the same group of 39 experts had ranked South Korea ahead in several categories, including high-density memory technology, advanced packaging, and next-generation sensing technology.
A lifecycle analysis of the semiconductor industry revealed that while South Korea still leads in manufacturing processes and mass production, it lags behind China in basic research and design capabilities.
The experts identified several factors that could impact South Korea’s semiconductor technology level: a brain drain of key personnel, AI semiconductor technology developments, U.S.-China tensions, nationalistic policies, and supply chain localization. Among these factors, only AI semiconductor technology was viewed as potentially beneficial for South Korea’s competitive position.
The report painted a sobering picture of South Korea’s semiconductor market prospects, citing multiple challenges including the rise of Japan and China, U.S. sanctions, the rapid growth of Southeast Asian competitors, the potential impact of a second Trump administration, and relatively small domestic R&D investment.
To address these challenges, the report recommended securing advanced semiconductor manufacturing capabilities, expanding the system semiconductor ecosystem, and developing strategies to nurture and retain key talent.
Kevin Lee (kevinlee@koreabizwire.com)
