Bloomberg Highlights Korea-Taiwan Semiconductor Power Concentration: "Dependence Inevitable for the Time Being"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Bloomberg News reported on the 3rd (local time) that the dominance of South Korea and Taiwan in the semiconductor industry is gaining attention amid the recent global semiconductor shortage crisis.

On the same day, Bloomberg highlighted the influence of South Korea and Taiwan in the semiconductor market in an article titled "The Semiconductor Power of South Korea and Taiwan Shakes the US and China."

Bloomberg stated that as semiconductor demand increases due to 5G and artificial intelligence (AI), the recent chip shortage has led automobile companies to halt factory operations, spotlighting the global economy's dependence on the semiconductor industries of these two countries.

It also presented statistics illustrating the dominance of the semiconductor industries in both countries.

According to a report released last September by Boston Consulting Group (BCG) and the Semiconductor Industry Association (SIA), Taiwan and South Korea accounted for 21.7% and 20.9%, respectively, of the world's semiconductor production capacity, ranking first and second.

In comparison, China accounted for 14.7%, and the United States only 11.6%.

In particular, in the memory semiconductor sector, Samsung Electronics and SK Hynix held more than two-thirds of the market share.

Bloomberg also quoted Ahn Ki-hyun, Executive Director of the Korea Semiconductor Industry Association, saying, "South Korea and Taiwan are like the Organization of the Petroleum Exporting Countries (OPEC) of the semiconductor industry."

It added, "Although the US and China are striving to strengthen semiconductor production capabilities, it is not an easy situation," and "For the time being, reliance on South Korea and Taiwan is inevitable."