[Chodong's View] Semiconductor 'Squid Game'

The Semiconductor War Now Requires a National Team Effort
Korea Stumbles Amidst Ministry Conflicts and Regulations
Urgent Need for Government-Led Team Play

"The mugunghwa flower has bloomed."

Semiconductor companies, which are at the heart of the artificial intelligence (AI) supremacy race, are already in the middle of a Squid Game. It is a game of survival, where the stakes are whether to survive or be eliminated. Technology remains crucial, but the era when technology alone could determine the winner is over. Now, survival requires a national team effort, mobilizing laws and regulations, diplomacy and capital, talent and infrastructure. The problem is that Korea is still competing as if it were an individual match. Although the nature of competition has changed, the response remains stuck in the past.

The first game is "The mugunghwa flower has bloomed." The United States is designing the playing field by creating laws and regulations to control the movements of global semiconductor companies. Companies like Nvidia and Broadcom are creating stable opportunities for survival and growth within this framework. Intel has recently fallen behind in the competition, while the Donald Trump administration is working to transfer the foundry (semiconductor contract manufacturing) business to TSMC. The government is designing the rules for the entire industry, and companies are reorganizing their strategies within those rules.

The second game is "Glass Bridge." China must grow its semiconductor industry while avoiding U.S. sanctions. Companies such as YMTC and CXMT are walking on glass panels, where every step could trigger new regulations. Nevertheless, the central government sets the strategy, while local governments and state-owned funds execute it. Equipment is financed through policy loans, and deficits are absorbed by the funds. Quietly but firmly, they are carving out a path to survival. Isolated, but never retreating.

On the 26th, the release date of the Netflix original series "Squid Game 2," a sculpture of the Squid Game character "Younghee" and promotional banners were installed at Gwanghwamun Square in Jongno-gu, Seoul. Photo by Kang Jinhyung

The third game is "Tug-of-war." Taiwan's TSMC is holding the rope together with the entire nation, including the central government, local governments, power companies, and diplomatic channels. Once a factory site is chosen, infrastructure is built first, and the company rises on top of it. Even in diplomatic arenas, TSMC is a major topic of discussion. When the rope is pulled, TSMC is not just a company but an entire system.

The fourth game is "Dalgona Candy." Japan's semiconductor foundry company Rapidus is carrying out its assigned mission with the complex mold of "Japan's semiconductor revival" in hand, backed by massive government funding and advanced technology collaboration with IBM.

So, where is Korea? Korean semiconductors are currently trapped in "Marbles." The government, corporations, and political circles?supposedly on the same team?are pointing fingers at each other. The Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance have been at odds over tax policy for years. Issues such as labor flexibility, metropolitan area regulations, and infrastructure challenges like power and water are discussed repeatedly but never resolved. While companies are constantly recalculating their technology competition and investment timing in real time, the government remains paralyzed by inter-ministerial interests and partisan calculations.

The rules of Squid Game are merciless. Failing even one mission means elimination. What our companies need now is not a separate roadmap for each ministry. Just as a breakdown in teamwork during tug-of-war drags everyone down, the semiconductor industry cannot survive on individual strategies alone. Survival requires a broad perspective of the entire playing field and an operational plan that can mobilize the whole industry. The government must not be a spectator, but must take the rope at the center. Basic infrastructure like power, water, and industrial sites cannot be shouldered by the private sector alone. Nurturing talent is also only possible if the government changes the framework.

Korea's semiconductor industry was once considered the most promising contender to win. But the rules of the game have changed overnight. Individual skills are no longer enough. To survive to the end, a "Kkanbu policy"?a true partnership?is needed.