Caught in a Sandwich Amid US, China, and Japan Offensives... Samsung and Hynix Strengthen System Division

Samsung Invests 133 Trillion Won in NAND and More
Hynix Develops System Products

[Asia Economy Reporter Dongwoo Lee] As the semiconductor hegemony battle among the US, China, and Japan intensifies, "Semiconductor Korea" is being caught in a sandwich situation. In particular, there are growing concerns that Korean companies' challenges will deepen as the global semiconductor market is shifting from DRAM, which led Korea's semiconductor miracle, to system semiconductors used in artificial intelligence (AI), 5th generation (5G) mobile communications, and mobile devices.

According to the industry on the 15th, based on last year's data, Intel of the US ranked first in the system semiconductor sector with a market share of 22%. Taiwan's TSMC ranked second with 11%, followed by Qualcomm (7%) and Broadcom (7%) of the US, and Samsung Electronics ranked fourth with 4%. This contrasts with Samsung Electronics leading the DRAM sector with a 44.1% global market share.

Samsung Electronics' recent review of additional investment plans for system semiconductors and NAND flash also reflects this background. Earlier, the company announced through its "Vision 2030" plan that it would invest a total of 133 trillion won over 12 years, aiming to diversify its memory-centric portfolio as quickly as possible.

SK Hynix is also focusing on developing system semiconductor products related to mobile and notebook image sensors. Based on last year's data, the system semiconductor business segment's sales grew 1.5 times in one year to 800 billion won. Recently, SK Hynix acquired the foundry business division of "Magnachip" for 530 billion won through its investment company.

SK Hynix plans to continuously increase investments to enhance related technological capabilities as the system semiconductor business areas expand with strengthened smartphone camera functions, CCTV, endoscopes, and more.

An industry official said, "In line with the semiconductor self-sufficiency trend in the US and China, the proportion of foundry business and system semiconductors is increasing," adding, "Since Korea could become sandwiched in the semiconductor hegemony competition among the US, China, and Japan, national support for the system semiconductor sector is necessary."

This content was produced with the assistance of AI translation services.