Samsung Electronics Co.’s semiconductor facilities in Austin, Texas, in this photo provided by the company (Image courtesy of Yonhap)

SEOUL, Oct. 16 (Korea Bizwire) – As concerns grow over Samsung Electronics’ future, South Korea’s semiconductor industry finds itself at a critical juncture.

With China and Taiwan rapidly catching up in technology, there’s mounting anxiety that South Korea could lose its edge in advanced semiconductor markets crucial for artificial intelligence and aerospace applications.

At a special forum organized by the Korea Enterprises Federation in Seoul, former government ministers and industry experts convened to discuss the challenges facing the nation’s semiconductor sector.

Their consensus: private companies must urgently pivot to new technologies, while the government needs to step up with direct subsidies.

“Korea’s DRAM technology will reach its limits within the next five years,” warned Hwang Cheol Seong, a distinguished professor of materials science and engineering at Seoul National University.

Hwang pointed out that Chinese companies like CXMT and YMTC have already captured significant market share in DRAM and NAND flash memory, respectively. 

Lee Yoon-ho, a former knowledge economy minister, expressed concern about Samsung Electronics, the country’s semiconductor giant.

“Samsung seems to have become complacent with its success in DRAM, leading to a noticeable drop in organizational tension,” he observed. 

The experts emphasized that semiconductors are no longer just a technology industry but a matter of national security.

“Semiconductors have become the core component determining a country’s competitiveness,” said Lee. He criticized the Korean government’s hesitancy in providing direct subsidies to large corporations, fearing public backlash.

Sung Yun-mo, another former minister, advised focusing on Korea’s strengths while preparing for the future. “We should maintain our edge in memory chips while simultaneously laying the groundwork for the booming fabless sector,” he suggested. 

The panel didn’t shy away from critiquing Samsung Electronics, the industry leader now facing questions about its future. Former Minister of Trade, Industry and Energy Lee Chang-yang noted, “Samsung appears weak in ‘open innovation.’ As a frontrunner, they need to be more vigilant, observing competitors and being open to acquiring new technologies or companies.”

Kevin Lee (kevinlee@koreabizwire.com)