Semiconductor experts rate S. Korea’s semiconductor industry as 71 out of 100

Posted on : 2021-05-07 16:58 KST Modified on : 2021-05-08 13:28 KST
The experts consider Taiwan and China as the biggest threats to the South Korean semiconductor sector
US President Joe Biden holds up a silicon wafer as he participates virtually in the CEO Summit on Semiconductor and Supply Chain Resilience in the White House on April 12. (AP/Yonhap News)
US President Joe Biden holds up a silicon wafer as he participates virtually in the CEO Summit on Semiconductor and Supply Chain Resilience in the White House on April 12. (AP/Yonhap News)

How does South Korea’s technology stack up against the competitiveness of major industry leaders in different semiconductor areas, including the US, Japan and Taiwan?

In a survey conducted last month, the Federation of Korean Industries and the Korean Society of Semiconductor and Display Technology asked 100 semiconductor industry experts – 60 academics and 40 industry figures – to assign up to 100 points in four areas and 17 categories. The results shared on Friday showed South Korea averaging 71 points.

Its lowest scores were in artificial intelligence semiconductor software and design, at 56 points each. It also received a low score of 59 points in the system semiconductor area of vehicle semiconductor design.

Other areas where South Korea rated on the low side were semiconductor equipment (60 points), semiconductor components (63), power semiconductor design (64) and semiconductor materials (65).

Its highest scores were for memory semiconductor processes (95) and design (92). Relatively high scores were also assigned in the categories of IT semiconductor processes (81) and application processor (AP) foundry processes (80).

The survey findings also showed that when it comes to activities by other countries to protect and foster their own semiconductor industries, the respondents were most concerned about China. Thirty percent of respondents expressed a “highly negative” attitude on the focused semiconductor investment and pursuit attempts spearheaded by the Chinese government, while another 55.0% reported a “somewhat negative” view.

Respondents also showed high levels of concern about large-scale foundry investment for Taiwanese businesses and associated government support, with 25.0% expressing a “highly negative” view and 60.0% a “somewhat negative” one.

While a relatively large 55.0% of respondents expressed a “negative” view on US government support for reorganizing the global semiconductor supply chain, another 39.0% expressed a “positive” view.

The biggest concern mentioned in South Korea’s semiconductor industry was the “inadequacy of systems for supplying and training an advanced semiconductor technology workforce” (14.0%).

Other concerns mentioned by the experts included “global value chain instability due to major countries increasingly prioritizing their interests” (13.5%) and “lack of global competitiveness in South Korean semiconductor materials, components and equipment” (12.3%).

In terms of policy efforts to boost semiconductor industry competitiveness, 23.0% of respondents called for “bold tax support for company investment in production infrastructure and research and development.”

The experts also pointed to the need for “domestic production of semiconductor materials, components and equipment and expanded testbeds” (18.7%), “intermediate- to long-term plans for fostering a workforce” (15.7%), “increased flexibility in the 52-hour maximum workweek for the R&D sector” (9.3%) and “fast-tracking approvals and permits in connection with construction, the environment and safety [Severe Accident Corporate Punishment Act, Chemicals Control Act and Registration and Evaluation, etc. of Chemical Substances Act]” (8.7%).

By Kim Young-bae, senior staff writer

Please direct comments or questions to [english@hani.co.kr]

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