South Korea Poised to Surpass Taiwan in Semiconductor Production by 2032

South Korea’s Ascendancy in Global Semiconductor Market

South Korea is projected to become a dominant force in the global semiconductor industry by 2032, accounting for nearly 20% of worldwide production, according to a recent report by the Semiconductor Industry Association in collaboration with the Boston Consulting Group. This marks a significant increase from the 17% share recorded in 2022, positioning South Korea to outpace Taiwan, the current leader in the sector.

Strategic Investments and Growth

The report highlights South Korea’s strategic early investments in semiconductor manufacturing, which have catalyzed the growth of domestic giants such as Samsung Electronics and SK Hynix. These companies are now pivotal in South Korea’s ascension in the global NAND flash memory and DRAM markets, each commanding a substantial share.

Korea vs. Taiwan: A Shift in Dynamics

In the semiconductor production hierarchy, South Korea is set to rise from third place, a position it shared with Japan as of 2022, to second place globally, trailing only behind China. This shift is attributed to a forecasted two-percentage point increase from 2022 figures, with China anticipated to hold a 21% share by 2032. In contrast, Taiwan and the United States are expected to account for 17% and 14%, respectively.

Enhanced Production Capacity

The anticipated growth in South Korea’s market share is supported by a robust 12% annual increase in semiconductor production capacity, primarily driven by extensive construction of semiconductor factories. This growth rate is significant compared to other regions, placing South Korea ahead of Europe, Taiwan, Japan, and Mainland China in terms of capacity expansion.

Advanced Manufacturing and Global Investments

Despite its overall growth in production capacity, South Korea is expected to see a decline in its share of cutting-edge sub-10-nanometer chip production, decreasing from 31% in 2022 to 9% in 2032. Conversely, the United States is projected to increase its share of advanced logic manufacturing significantly, thanks in part to incentives like the CHIPS Act, which aims to bolster domestic production with substantial investments.

Global Semiconductor Landscape

The global semiconductor industry is witnessing a shift with various countries ramping up their investments and capabilities. The European Union, China, and other nations have launched substantial initiatives to strengthen their local semiconductor industries, mirroring actions taken by South Korea and Taiwan. This global competition underscores the strategic importance of semiconductors as essential components in modern technology.

Conclusion

As South Korea gears up to surpass Taiwan in semiconductor production by 2032, the global landscape of the industry continues to evolve with technological advancements and strategic investments by leading and emerging players. This dynamic shift not only reflects the technological prowess of nations but also their capacity to adapt to the demands of a rapidly progressing digital world.

This article delves into the anticipated changes in the global semiconductor market, highlighting South Korea’s projected rise to prominence and the strategic moves shaping the future of this critical industry.