South Korea looks to Taiwan as model for semiconductor decentralization

South Korea’s emulation of Taiwan, China’s semiconductor cluster model reflects a reactive shift to AI-driven manufacturing paradigms. Technically, this accelerates co-optimization of EUV lithography, advanced packaging, and domestic materials—but inflates capex for Samsung and SK Hynix, crowding out mature-node investments. From a compliance standpoint, over-concentration in homegrown or U.S.-aligned nodes heightens supply chain fragility amid unresolved U.S.-China tech tensions. TSMC, as the blueprint, will likely expedite second-tier fabs in Japan and Europe to preserve its technology lead, while mainland Chinese foundries double down on >28nm self-reliance for asymmetric competition. Over the next 18 months, a 'pseudo-decentralization' trend will emerge: geographically dispersed fabs masking tightly guarded process control anchored in the East Asian nexus—Korea, Taiwan, China, and mainland China—ironically reinforcing regional indispensability.