[Bread-Baking Typewriter] Korean Semiconductor, What and How Is It in Crisis?

Semiconductor Hegemony War

Samsung Electronics, which has maintained the world's number one position in the memory semiconductor market, has recently been experiencing significant disappointment both internally and externally. At the regular shareholders' meeting on the 19th, even executives expressed apologies, saying, "We are sorry for not meeting expectations." As a result, there are ongoing claims that Korea's semiconductor industry, which once competed for the top one or two spots globally, is facing the greatest crisis in its history. Although Korea has long boasted the world's number one market share in the memory semiconductor sector, there are also criticisms that it should no longer be complacent with memory semiconductors alone. However, the author argues that the harsh criticisms of Korea's semiconductor industry may be 'empty cries.' Many critics are pouring out criticism without truly understanding what the crisis is and how to move forward.

Regarding the calls for Korean companies to "enhance non-memory competitiveness," the author responds, "There is no such thing as a non-memory semiconductor in this world." This means that referring to all semiconductors other than memory semiconductors, which account for about 23% of the entire semiconductor market, as 'non-memory' is ambiguous. Semiconductor types include memory, discrete semiconductors, optics, sensors, analog, logic ICs, microprocessors, and more. The suggestion to not rely solely on memory but to also strengthen competitiveness in other semiconductor areas is valid. The author advises that misunderstandings about non-memory semiconductors should be cleared up and that more specific directions and implementation strategies should be presented to enhance Korea's semiconductor competitiveness.

In particular, Korea has a very high dependence on overseas sources for key materials and equipment in the semiconductor industry, resulting in a vulnerable supply chain structure. Moreover, semiconductors accounted for more than 13% of total export items as of last year. In the intensifying international order, including the US-China hegemonic rivalry, this structure is susceptible to external influences. Especially, the dependence on the Greater China region is excessively high by item. The author emphasizes that for Korean semiconductors to survive even 10 years from now, a diversification strategy is necessary. Reducing dependence on specific regions, countries, and items will prevent the prices of individual items from shaking the fate of companies and the entire nation.

If Korea's representative industry falters, the government's burden will inevitably grow heavier. The author advises that the government should not simply provide subsidies to companies but should build a collaborative model that allows the entire semiconductor ecosystem to develop evenly. Instead of providing immediate support to companies, a win-win platform should be established so that all can grow together. This means that as China's semiconductor rise continues and the US-China hegemonic rivalry intensifies, Korean companies need long-term survival strategies.

The author, who has long researched semiconductors and industrial analysis, expresses his affection for Korea's semiconductor industry through this book. He conveys the message that an accurate understanding of reality and concrete direction are necessary for the industry to move in the right direction. Beyond a simple technical book explaining semiconductor concepts, it sharply dissects misunderstandings about the semiconductor industry, geopolitical backgrounds, and international affairs, analyzing how the semiconductor industry is intertwined with the economy, diplomacy, and security.

This book is essential for those who want to face the reality of Korea's semiconductor industry and broaden their perspective. It provides answers on how the semiconductor hegemonic war will unfold in the future and the direction Korea should take within it.

Semiconductor Hegemony War | Written by Lee Ju-wan | Edenhouse | 280 pages | 20,000 KRW