Publisher Note
The Federation of Korean Industries recently hosted a semiconductor industry seminar. There, experts pointed out that the U.S.-China-Europe hegemonic rivalry is seriously affecting South Korea’s semiconductor industry.
“The United States may tell South Korea to sell nothing to China in the industry,” said SkyLake Investment CEO Jin Dae-je. The former Samsung Electronics president urged the South Korean government to work on countermeasures with the United States eager to press China in the sector and China striving to break the pressure.
Although the memory chip sector is now in a super-cycle, South Korean semiconductor companies’ conditions are far from favorable. The U.S. government is going to provide a 40 percent tax credit until 2024 for semiconductor companies investing in theUnited States and invest no less than US$22.8 billion for infrastructure expansion and R&D in the industry. In step with the plan, Intel declared that it would re-enter the global foundry market. In Europe, approximately 50 billion euroisforecast to be invested in the industry for a lower level of reliance on Asian foundries.
A large number of countries will try to house as many semiconductor development and manufacturing facilities as possible in themselves during the course. Both governments and enterprises are beefing up their efforts with the competition in the industry now no longer between the latter.
Due to their governments’ backing, Intel is further refining its technologies in the memory chip sector where South Korea has done well for long while TSMC is growing at a faster pace to keep ahead of Samsung Electronics in system-on-chip sector, both of which are threatening Samsung Electronics, in particular, which has been leading the national economy.
At the seminar, the former Samsung Electronics president mentioned his meeting with the late Samsung Group founder Lee Byung-chul 34 years ago. “The late founder remarked that England invented steam engines to dominate the world for 400 years and Samsung entered the semiconductor industry in the same regard,” the former president said, adding that his pat on the back two months before his death of cancer was the founder’s last will for him.
The former president shed tears while telling the story. This is might be because his grandson and Samsung Electronics vice chairman Lee Jae-yong is now behind bars, failing to fulfill the will and failing to seek the support he needs from the government when it is needed more than ever.