Experts Say "Korea's Competitiveness in AI and Automotive Semiconductors Scores 60 Compared to Advanced Countries"

[Asia Economy Reporter Su-yeon Woo] Semiconductor experts have diagnosed that South Korea's competitiveness in artificial intelligence and automotive semiconductor design, as well as semiconductor materials, parts, and equipment, is only at about 60 points compared to advanced countries. While South Korea holds an advantage in existing industries such as memory semiconductors, there are concerns about insufficient preparation in the non-memory semiconductor sector, which is a core technology of the 4th Industrial Revolution.

On the 6th, according to a survey conducted by the Federation of Korean Industries in collaboration with the Korea Semiconductor Display Technology Society targeting 100 semiconductor industry experts, the experts rated South Korea's competitiveness in AI semiconductor design at an average of 65 points and automotive semiconductor design at 59 points. This evaluation quantifies our relative technological level with the technology-leading countries set at 100 points.

The two fields considered core technologies of the 4th Industrial Revolution showed the lowest technology levels, followed by equipment (60 points), parts (63 points), and materials (65 points), which are semiconductor downstream industries that influence productivity and quality, also receiving low evaluations. Additionally, in all surveyed fields including memory, system, and AI, design was diagnosed as relatively less competitive compared to the process.

South Korea's Technological Competitiveness and Workforce Supply Levels by Semiconductor Sector
※Average values of responses, overall average of all items (17 items) are Technology (71) and Workforce (66) / (Source=Federation of Korean Industries)

Furthermore, the lower the technological competitiveness in a field, the more severe the manpower shortage was found to be. Looking at the domestic supply status compared to the demand for specialized personnel in the semiconductor industry (100), the AI semiconductor design sector scored 55 points, automotive semiconductor design 55 points, and AI semiconductor software sector 56 points, indicating the most severe manpower shortages in these areas.

When asked about the most negative impact on South Korea's semiconductor industry, 85% of respondents expressed negative views on China's government-led concentrated investment and pursuit (30% very negative, 55% somewhat negative). Regarding large-scale investment and government support by Taiwanese companies in the foundry business, 25% responded very negatively and 60% somewhat negatively. In contrast, opinions on the U.S. government's support for global semiconductor supply chain restructuring were 55% negative and 39% positive, showing a significant portion viewed it favorably.

The greatest concern in South Korea's semiconductor industry was the lack of a system for securing and nurturing advanced semiconductor technology personnel (14%). Experts also cited global value chain instability due to major countries' prioritization of their own interests (13.5%) and insufficient global competitiveness of domestic semiconductor materials, parts, and equipment (12.3%) as worrisome issues.

To address these issues, experts identified bold tax support for corporate production facilities and R&D investment (23%) as the most urgent policy improvement. They also agreed on the need for localization and expansion of test beds for semiconductor materials, parts, and equipment (18.7%), and mid- to long-term manpower development plans (15.7%).

On the same day, the Federation of Korean Industries also proposed key policy improvements such as expanding tax credits up to 50% for semiconductor manufacturing facilities and R&D investment, increasing university major quotas and scholarship support for semiconductor talent development, easing construction, environmental, and safety regulations, and administrative support for infrastructure development.

Yoo Hwan-ik, Director of Corporate Policy at the Federation of Korean Industries, emphasized, "Our semiconductor companies must fully mobilize their capabilities to widen the gap in memory technology and catch up with competitors in the system semiconductor field, but they are now facing international political risks surrounding the leadership of the semiconductor industry." He added, "The government and the National Assembly must strongly prepare and swiftly implement support measures that companies can feel."

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