SMIC accounts for 5.7% of the global market share in the semiconductor wafer processing industry in the second quarter of 2023, narrowing the gap with Samsung Electronics – Photo: REUTERS
Koreafacing comprehensive competition from China, from shipbuilding, steel to petrochemical industries, and the most worrying thing is that the semiconductor technology development gap between Korea and China has narrowed to just 1 year left.
Traditional industrial centers that were once symbols of Korean industrialization, such as Pohang, Yeosu, Ulsan and Osong, are now facing a comprehensive crisis, the report said.Maeil BusinessNovember 21 said.
China dominates the shipbuilding market and “presses” Korean steel
As of September 2024, the market share ofChinain the global shipbuilding order market is up to 67%, while Korea’s market share is only 20%.
China has not only enhanced its technological competitiveness through large-scale production in bulk production, but also surpassed Korea in the field of tankers and container ships.
Shipbuilding industry experts warn of growing competition from China and say South Korea must take stricter measures to avoid falling behind in high-value-added shipbuilding.
Global shipping company Hapag-Lloyd ordered 24 new container ships from two Chinese shipyards, with a total investment value of about 4 billion USD – Photo: REUTERS
The Korean steel industry is also not very optimistic when POSCO, Korea’s leading steel corporation, on November 19 announced the closure of its first fiber steel factory after more than 45 years of operation.
Previously, in July 2024, POSCO closed a steel factory and a few months later, POSCO continued to close another main production facility.
According to analysis, China sells cheap steel plates to the Korean market at prices lower than production costs, further weakening the price competitiveness of Korean steel companies.
Semiconductor industry and memory sector
In terms of semiconductor industry, there are few prominent semiconductor companies in October 2023, but currently Chinese semiconductor manufacturers such as Semiconductor Manufacturing International (SMIC), Yangtze Memory Technologies (YMTC) and ChangXin Memory Technologies (CXMT) have all become giants in the industry.
According to data from market research company TrendForce, in the second quarter of 2023, SMIC ranked third in the global semiconductor wafer processing market with a market share of 5.7%, gradually narrowing the market share gap with the Company. Samsung Electronics.
“The competitor that needs to be most wary of the world’s leading semiconductor manufacturing corporation TSMC is no longer Samsung but SMIC.
SMIC quickly closed the technology gap by recruiting TSMC’s high-paid research and development staff, which posed a direct threat to industry-leading companies,” said professor Kwon Seok Joon at the University. Technology said.
In the memory sector, the DRAM technology gap between CXMT and Samsung Electronics has now narrowed to less than 1.5 years.
According to the report, four factors driving China’s science and technology development are autonomy in research and development, a large domestic market, a flexible labor market, and policy and financial support. main.
China’s transformation from a “world’s factory” to a “technology powerhouse” has had a major impact on the global industrial landscape, the report said.Maeil Businesscomment.
This is not only a competition between Korea and China but also a global test of technological innovation and industrial transformation. How South Korea seizes the opportunity to transform will determine its future international competitiveness.
