Semiconductor wafer. /Courtesy of News1
Semiconductor wafer. /Courtesy of News1

Experts in South Korea have concluded that China has surpassed the country in semiconductor technology.

According to a deep analysis titled 'Analysis of Technology Levels in Three Major Game-Changer Fields' by the Korea Institute of Science and Technology Evaluation and Planning, as of last year, China's foundational capabilities in all technology sectors except advanced packaging surpassed those of South Korea, and even in the memory technology sector, where South Korea traditionally excels, China's foundational capabilities have also overtaken.

According to a technology level assessment from 2022, among five semiconductor technologies in South Korea, memory and advanced packaging technologies remain in second place, behind the United States, while AI semiconductors, power semiconductors, and sensors rank 4th and 5th among targeted countries (South Korea, China, Japan, the EU, the United States).

In a further evaluation involving 39 domestic experts in the semiconductor field, when the top country's capabilities were scaled to 100%, South Korea's high-density and resistance-based memory technology was at 90.9%, while China's was at 94.1%.

Additionally, for high-performance and low-power AI semiconductor technology, China was at 88.3%, while South Korea was at 84.1%. In power semiconductor technology, China was at 79.8%, and South Korea was at 67.5%. For next-generation high-performance sensing technology, China was at 83.9%, and South Korea was at 81.3%. Only in the foundational capabilities of advanced packaging technology were both countries equal at 74.2%.

Back in 2022, all five technologies showed that South Korea was ahead of China, but it appears that the evaluation has flipped in just two years. The report explained that "China has taken note of its high external dependency on semiconductors and, since 2014, designated semiconductors as a national strategic industry, pushing for nationalization policies and making large-scale investments."

In a survey based on the technology life cycle across the entire semiconductor sector, China showed lower rankings in processes and mass production than South Korea, but it maintained an advantage in foundational capabilities and design. South Korea's foundational capabilities and design technology levels were evaluated as the lowest among comparison countries, indicating the most vulnerable area in the semiconductor life cycle.

The report highlighted issues expected to impact domestic technology levels in the semiconductor field, such as the outflow of core personnel, AI semiconductor technology, U.S.-China rivalry, domestic-centered policies, and rapid changes in supply chains (localization).

The report also projected a bleak outlook for South Korea's semiconductor market, considering factors such as the second term of U.S. President Donald Trump, energy policies in the EU, and R&D investments.