[Editorial] Joint Semiconductor Offensive by the US, Japan, Taiwan, and China Demands a United Response from Government and Industry

Competition in cutting-edge semiconductor development is intensifying by the day. The United States and Taiwan have already pulled ahead of Korea, and China is closing in fast. Now Japan is also stoking the race, creating the impression that Korea is surrounded and under coordinated pressure from four major players.
According to a report on the 26th by Nikkei, the Japanese government plans to establish three semiconductor hubs, including one in Tokyo, focused on chip design as well as equipment and materials. These hubs will support companies, universities, and research institutes.
Tokyo intends to allocate 130.6 billion yen (about 1.2 trillion won) in government funds to build these hubs and to back the activities of related firms and research organizations.
Japan has already been offering massive subsidies to attract Taiwan Semiconductor Manufacturing Company (TSMC) and to support Rapidus. Having fallen behind in semiconductor development and production, Japan is pursuing a strategy of mass-producing state-of-the-art chips on its own soil, even if that means bringing in foreign companies.
At the same time, it aims to strengthen Japanese firms’ capabilities in chip design and component manufacturing. In AI semiconductors, design is currently led by US companies such as Nvidia.
China’s advance in advanced semiconductors has been extremely rapid. A recent report by the Korea Institute for Industrial Economics & Trade (KIET) notes that China has not yet achieved its goal of a 70% self-sufficiency rate in semiconductors, but it has succeeded in building an independent ecosystem in fabless design and back-end processing.
The report analyzes that big tech companies such as Huawei and Baidu are designing their own AI chips, and that their design capabilities have now reached global standards. In effect, China is solidifying a homegrown AI technology ecosystem in response to US export controls.
Korean companies, for their part, are also stepping up their efforts. SK Hynix has begun mass production of HBM4, its sixth-generation high-bandwidth memory, and Samsung Electronics has officially announced shipments as well. SK Hynix recently said it has formed a consortium with SanDisk to standardize specifications for high-bandwidth flash (HBF). As the number of users simultaneously accessing AI services surges, limits are emerging in handling massive volumes of data. HBF is a next-generation advanced semiconductor designed to overcome those bottlenecks. As with all advanced industries, the pace of change in semiconductors is extremely fast. Even a brief lapse in focus can mean falling out of the race. To maintain strong competitiveness, companies must keep innovating and stay ahead of the market. Only when the capabilities of the state and the private sector are combined to create synergy can a country outperform its rivals, rise to the top, and hold that position. Conversely, this also means that Korea can become the world’s leading nation in advanced semiconductor technology. Nvidia may be in the lead today, but if companies pull and the government pushes, there is no reason Korea cannot catch up. Taiwan is enjoying rapid growth on the back of TSMC’s semiconductor business. Nvidia posted 98 trillion won in sales in the fourth quarter of last year alone, setting an all-time record, and it likely accounts for a significant share of US economic growth. These two companies show just how crucial the semiconductor industry is to a national economy. Korea must also throw its full weight behind this sector. Construction of the Yongin Semiconductor Cluster Industrial Complex is gaining momentum, and building out semiconductor infrastructure is only the starting point. The real key is securing talent. Without enough skilled people, no level of innovation can be achieved.