Despite continuous efforts by the United States to limit China's technological progress, reports from South Korea reveal a concerning reality: China's semiconductor sector is rapidly advancing, presenting a notable challenge to South Korean dominance in the Chinese market.
China's Technological Advancements
Contrary to earlier predictions, the pressure from the US has not notably diminished China's industrial competitiveness. In various sectors like smartphones, displays, and notably in semiconductors, China has not only strengthened its position but is also mirroring the technological advancements historically associated with South Korea.
Impact on South Korean Market
In the Chinese smartphone market, local brands have surged ahead of South Korean giants such as Samsung. Data indicates a sharp decline in Samsung's foldable phone market share, dropping to 5.9% in the first quarter of 2024 from 11% the previous year, leading to it falling to fifth place.
Accelerated Self-Sufficiency Drive
The resurgence of Huawei serves as a prime example of China's adaptability and resilience under external pressures. Despite US attempts to sideline the company, Huawei's latest Pura 70 series primarily features Chinese-made components, showcasing their ability to thrive amidst restrictions and fostering a drive for self-sufficiency in the country.
This swift progress in China's semiconductor and display markets poses significant challenges for South Korea's tech industry. The landscape in the Chinese market, once dominated by South Korean firms, is shifting as local Chinese players gain substantial market share. This trend raises doubts about South Korea's capacity to maintain its competitive position against China's rapid technological advancements.
The US's strategy aimed at impeding China's semiconductor industry appears to be counterproductive, inadvertently hastening China's drive towards self-sufficiency and enhancing its competitiveness. This development calls for a reassessment of the global technology arena, prompting South Korea to potentially rethink its strategies to navigate the evolving dynamics amidst China's ascent as a tech powerhouse.
