South Korea's semiconductor technology has fallen behind China's across key areas, marking a significant shift from previous assessments. According to a recent survey of 39 local experts conducted by the Korea Institute of S&T Evaluation and Planning, South Korea ranked second in high-intensity and resistance-based memory technology, scoring 90.9 percent, compared to China's leading 94.1 percent. The benchmark for the world's top technology is set at 100 percent.
The survey also revealed South Korea's struggles with high-performance and low-power artificial intelligence (AI) semiconductors, where it achieved only 84.1 percent, lagging again behind China's score of 88.3 percent. This dramatic change is indicative of growing challenges within the local semiconductor market, as noted by industry experts.
These findings come after a similar survey conducted last year positioned South Korea as having superior semiconductor technology compared to China. This year's report raises concerns about the competitive edge of South Korea’s semiconductor industry, pinpointing various factors contributing to its slipping status. For one, there are rising uncertainties stemming from the increasing prowess of Japan and China, alongside possible trade restrictions anticipated under the new U.S. administration.
The report pointed out intensifying competition from Southeast Asian countries as another hurdle for South Korea. To adapt to these challenges and restore its competitive advantage, it stressed the importance of securing advanced semiconductor manufacturing technologies. According to the report, efforts must also be made to attract and retain high-caliber talent within the industry and prevent the outflow of skilled professionals.
Industry analysts have expressed alarm over this downward trend, noting it could have wider repercussions for South Korea’s economic performance and its role as a technological innovator. "Korea ranked second in high-intensity and resistance-based memory technology, scoring 90.9 percent, compared with China's 94.1 percent," reported Yonhap. This contrasted sharply with previous evaluations. Industry insiders argue this shift could jeopardize South Korea's longstanding dominance in semiconductor technologies.
The rising significance of AI and Internet of Things (IoT) technologies highlights the urgency for South Korea to bolster its semiconductor manufacturing capabilities. The country has been known for its innovation, and the potential downfall could be detrimental if measures are not enacted swiftly.
Economists and industry observers suggest collaborative initiatives with local universities and research institutions could serve as catalysts for training and re-skilling efforts within the semiconductor field. "To maintain the country's competitive edge, the report stressed the need to secure advanced semiconductor manufacturing technologies and to prevent the outflow of skilled professionals," noted the evaluation. Creating favorable environments for research and development, alongside supportive government policies, could reinvigorate South Korea's semiconductor industry.
South Korea's predicament provides a fascinating case study on the rapid evolution of technology sectors. A mere year has seen the rankings flip, illuminating how fast-paced advancements influence global competitiveness. With proactive decisions, South Korea could still reclaim its esteemed title within the semiconductor community.
One thing is clear: action must be taken now. Delaying any strategy not only risks falling behind but could also allow competitors to seize opportunities within the growing semiconductor market. South Korea must renew its commitment to developing technologies and safeguarding its intellectual resources if it hopes to lead the sector once again.