The government has begun preparing a mid- to long-term strategy for the semiconductor industry to brace for the "post-supercycle" era. According to Seoul Economic Daily's reporting Tuesday, the Ministry of Trade, Industry and Energy (MOTIE) recently commissioned the Korea Institute for Advancement of Technology (KIAT) to conduct a research study diagnosing the domestic semiconductor industry. The plan is to establish a mid- to long-term strategy by October, including a review of the memory chip market conditions and measures to strengthen the competitiveness of system semiconductors and non-memory chips.
The aim is to prepare preemptively for a downcycle and enhance industrial competitiveness, even amid the favorable winds of May semiconductor exports surging 52.2% from a year earlier. With the Korean economy's dependence on semiconductors having grown extremely high, moving to prepare for the aftermath of the boom is a welcome step.
This year, the Korean economy is sustaining its recovery on the back of strong exports and investment centered on semiconductors, with the Organization for Economic Cooperation and Development (OECD) sharply raising its growth forecast to 2.6%. However, it is also true that a significant portion of this growth depends on semiconductors, which account for more than 20% of total exports. As the warmth of semiconductor-driven growth fails to reach the livelihood economy and other industries, K-shaped polarization is also deepening. Korea's global market share in system semiconductors stands at just around 3%, and its non-memory capabilities remain stagnant. Relying solely on its memory chip lead — which could be overtaken at any time — will not be enough to weather the harsh winter ahead.
Companies have also embarked on innovation to strengthen their semiconductor competitiveness. Following Samsung Electronics Executive Chairman Jay Y. Lee's call for a "complete overhaul of organizational DNA," Samsung Group has declared an "AI transformation (AX)" across all corporate operations. Samsung Electronics (005930.KS) and SK hynix (000660.KS) are also reviewing plans to build large-scale new packaging plants in the Jeonnam-Gwangju and Chungcheong regions. The challenge lies in the systems and infrastructure to support corporate will. SK Group Chairman Tae-won Choi, meeting reporters after attending Japan's Nikkei Forum the same day, said, "We are considering the location for our next plant," while adding, "Power, land, people, and water must all be in place." This means that securing the basic infrastructure to build a semiconductor plant, whether at home or abroad, must come first.
Now, at the peak of an all-time boom, is precisely the golden time to prepare for a semiconductor downcycle and strengthen competitiveness. The government must step up various forms of support so that companies can maintain their global competitiveness. It must dismantle location regulations that obstruct investment and accelerate the cultivation of semiconductor talent. In addition, it must flexibly reform outdated regulations and a rigid labor market that hold back companies fighting on the front lines of the global semiconductor hegemony race.
