China's technology in semiconductor field will surpass Korea's in the future: HRI

"반도체•AI 분야에서 중국이 한국 역전할 것"

South Korea's economy relies heavily on semiconductor exports... and local chipmakers are bracing for rivals from China.
And a latest report shows... that China's technology in the field will surpass Korea's in the future.
Our Ko Roon-hee explains.
Researchers at Hyundai Research Institute have warned that Korea's semiconductor industry is expected to face increased pressure from Chinese rivals.

Although the report released on Sunday did not provide a timeline of when this will happen, it says local companies' market share in the global chip industry will decrease at a faster rate... if special countermeasures aren't prepared.

This comes after Beijing's moves to dominate hi-tech industries, including semiconductors, by increasing investment.

This is part of Beijing's 'Made in China 2025' goals... aimed at increasing the domestic content of core components.
Although the movement has been hit by the U.S.-China trade war, previous plans include... increasing the proportion of home-made chips so they account for 40 percent of the local market by 2020, and at least 70-percent by 2025.

Meanwhile, a separate report by research firm TrendForce shows that China's semiconductor industry revenue will grow by more than 16-percent in 2019.
Although this marks the slowest pace in 5-years because of the continued trade conflicts, the report says the local chip industry will continue to grow... thanks to emerging technologies like AI, 5G, and autonomous vehicles.
Ko Roon-hee, Arirang News.

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[asianamericancasestudies]

The funny thing is, almost every PhD engineers in America are Chinese ethnic.

[XIVDALAILAMA]

The US and Europeans have banned the export of core technologies to China for decades. China cannot continue paying billions of dollars in licence fees for using foreign technology and have its tech companies such as Huawei and ZTE barred from buying US chips. The actions of the US and its allies will only speed up Chinas efforts in developing its own. Thank you!

[kmmiller]

Now China has made IC Chips a priority it won't be long before they will be leaders in that field, they have the engineers, money and rare earths to support it .

[KayyHong]

The question is not if but when China will surpass America in technology!

[mayleetan]

Dark evil force will not prevail. It is proven in the past. Some people cannot live well with others. They just want to destroy others out of jealousy and insecurity. All men should live well together as the world is big enough for everyone, just as God has created. Otherwise we are directly saying that God is defective in His Creation

[hahaleris]

Korea should ditch the trilateral trade with Japan and China and increase trade more with America. America has built South Korea to be developed and now its time to help us back! Biggest investors of Samsung and SK Hynix are Americans but it is still not enough and they should sell all of Samsung and Hynix shares to American investment firms and be owned entirely by Americans.

[bangbangtangahwei]

Its a pity those semiconductors companies didnt invest in indonesia. I spend millions for pasport, ics, fwcms to works in their malaysia plants

[pakhoe]

It does not have to be this way, South Korea can also help China and itself by manufacturing Chinese design chips, this will not only continue South Korea's market share but also South Korea will be immune from the cut off to Western design chips, and it is a matter of time when all if not most electronic manufacturers will adopt the user of Chinese designed chips and that will include all mobile phone manufacturers, the capacity to service such a huge industry in and from China may not be easy to fulfil with only manufacturing within China.

[aabb-zzuw]

According to international laws such as the Wassenaar agreement, ITAR and export control regimes, semiconductor equipment is considered dual-use munition technology and cannot be exported at all to China, Russia and Belarus. This is why China CANNOT make semiconductors and Belarus, which started making semiconductors at a similar time to Korea, can only make low-quality things like diodes and transistors which are sold in Korea for a very very cheap price. Thus, chinese companies have to foundry their designes to TSMC; Russia also foundried its Elbrus 3 CPUs to TSMC. Export control regime like the former COCOM is the reason why East Germany developed really weird and strange technologies like thick film devices. (mounting low tech devices on a ceramic substrate to do the same as semiconductor chips) China can't make semiconductors and this will remain that way forever.