Is the Semiconductor Department Boom a Mirage?

A new term has emerged: "medical, dental, Korean medicine, pharmacy, and semiconductor departments." It refers to the top-tier university majors that add semiconductor engineering to the traditional hierarchy of medical, dental, Korean medicine, pharmacy, and veterinary schools. The phrase has surfaced as competition for semiconductor contract department admissions has heated up. Until recently, semiconductor contract departments were seen as a kind of insurance policy for upper-tier applicants preparing for the possibility of failing to get into medical school. In a country that desperately needs science and engineering talent, the appearance of such a term seems like a welcome sign.
The popularity of semiconductor departments can be traced above all to the triumph of value for money. Medical school requires at least six years of core coursework, followed by internships and residency training that can stretch close to 10 years. The time and money poured into that path are borne entirely by the individual. By contrast, semiconductor contract departments offer four years of full scholarships and guarantee employment at a major company upon graduation. On top of that, SK hynix Inc. and Samsung Electronics Co., Ltd. offer generous incentives to employees. If operating profits remain as high as they are now, workers can take home several hundred million won a year. It seems that students have begun to calculate that a guaranteed eight-figure salary four years later is better than a doctor's income after 10 years of hardship.
For top students, prestige is another major factor in choosing a major. The medical profession is widely regarded as a socially respected career. Perceptions of semiconductor engineers are also changing, moving beyond the old image of simple technicians. Riding the wave of artificial intelligence (AI), they are being redefined as innovators who design the infrastructure of human civilization. That image of being designers who move the world appears to have translated into pride in the profession. Finally, there is the promise of stable, long-term employment. Doctors with licenses do not face mandatory retirement. Likewise, the belief that semiconductors will not suddenly collapse into a declining industry amid the AI boom has further fueled the preference for semiconductor departments.
At this point, it may seem that the country has finally received a green light for securing science and engineering talent. But that would be a serious mistake. First, any analysis suggesting that the rush toward medical school has eased is a naive illusion. The term "medical, dental, Korean medicine, pharmacy, and semiconductor departments" is closer to marketing language created by private academies and consulting firms. They even use the expression "medical, dental, and semiconductor departments" to deliberately attract demand for semiconductor department prep courses.
The real aim is to quietly push pharmacy and veterinary schools to the back in order to create new academy demand. Even if the semiconductor contract department craze is real, Korea's admissions culture has not changed much. It is simply that one more semiconductor-related major has been added to the top-tier medical school rush. There is no evidence that semiconductor contract departments have absorbed large numbers of medical school applicants. If grades are good enough, students still go to medical school.
We also need to face the fact that only semiconductor contract departments are benefiting. The gains are limited to the "semiconductor contract departments" at major elite universities that have employment agreements with Samsung Electronics Co., Ltd. and SK hynix Inc. These days, the job market for graduates of general Department of Computer Engineering, Department of Electrical and Electronic Engineering, and Department of Materials Science and Engineering programs is extremely tight. The old saying that humanities graduates are struggling while science and engineering are in their golden age has also become outdated since the spread of AI. In other words, the benefits of semiconductor departments have not spread to major science and engineering majors.
Another painful point is that only Samsung Electronics Co., Ltd. and SK hynix Inc. seem to satisfy the appetite for science and engineering careers. A chronic problem in Korea's job market is the wage gap between large corporations and small and medium-sized firms. Some surveys say the gap is as much as twofold. The craze for contract departments deepens this sense of deprivation. Only a small number of students are able to secure a bright future in advance while still in college. Meanwhile, small and mid-sized semiconductor companies are struggling with labor shortages, and the dual structure of the labor market becomes even more entrenched.
The strong performance of semiconductor contract departments is certainly welcome news. But it is too early to read it as a signal of a revival in science and engineering. News of performance bonuses at one or two major corporations has little to do with most workers or job seekers. It is limited to a small elite. Whether this boom is a mirage will be decided when the semiconductor cycle turns downward. If the competition for semiconductor-related departments does not weaken even in the midst of a downturn, only then will it be fair to call it the real starting gun for a revival in science and engineering.
jjack3@fnnews.com Reporter