China’s growing dominance in the semiconductor industry has reached a new milestone, with a recent report revealing that it has surpassed South Korea in foundational capabilities across nearly all major technology areas, including the memory chip sector where South Korean companies have long held the upper hand. The Korea Institute of Science and Technology Evaluation and Planning (KISTEP) released findings based on a 2024 survey of 39 South Korean semiconductor experts, highlighting a significant shift in the global semiconductor landscape. The research shows China now ranks second worldwide in memory technologies, just behind the United States, surpassing South Korea which previously held that position. This development marks a turning point in the global chip race, where China has steadily built capacity despite restrictions.
According to the KISTEP analysis, Chinese firms are increasing their market share in memory production, an area where South Korean leaders such as Samsung Electronics and SK Hynix had maintained dominance for decades. China’s advancement is backed by scores that reflect its progress in key technologies, with high-density resistive memory technology scoring 94.1%, surpassing South Korea’s 90.9%. In other areas such as high-performance and low-power AI semiconductor technology, China scored 88.3% compared to South Korea’s 84.1%, and in power semiconductors China registered 79.8%, far ahead of South Korea’s 67.5%. The two countries remain on par in advanced packaging technology, both scoring 74.2%, though Taiwan currently leads in commercialisation for packaging, while the US dominates in most other domains. The report identifies South Korea’s weakest points as foundational capabilities and design technology, which have become critical bottlenecks in its semiconductor life cycle.
The rapid progress of China’s chipmakers comes despite extensive US export restrictions that limit access to advanced chipmaking tools and designs. In response, Beijing has adopted a “whole nation” strategy, funnelling record investments into semiconductor development and launching its largest-ever chip investment fund last year. Domestic firms such as ChangXin Memory Technologies (CXMT) have narrowed gaps with global competitors, producing DRAM chips using 16-nanometer processing technology. Although still trailing the 12-nm and 14-nm processes used by Samsung, SK Hynix, and Micron in DDR5 memory production, China’s consistent improvements indicate that the divide is closing faster than anticipated. The KISTEP report notes that South Korea continues to lead in process and mass production, but China has established superiority in design and foundational technologies, which could determine the long-term direction of the industry.
The findings raise concerns for South Korea’s semiconductor sector, which remains one of the cornerstones of its economy. Challenges include the potential decline of exports to China under US export controls, growing competition in AI semiconductors, and the migration of skilled talent. With China’s accelerated efforts toward self-sufficiency and its growing technological resilience, the global semiconductor hierarchy is undergoing a realignment. While the United States maintains dominance across most critical technologies and Taiwan continues to lead in packaging, China’s strong performance in memory and AI-related chips signals a future where its role as a global semiconductor powerhouse cannot be overlooked. The report underscores that geopolitical shifts, coupled with China’s focused national strategy, are reshaping the balance of influence in one of the most vital industries for global technology and economic growth.
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