South Korea’s semiconductor boom risks flatlining under US–China pressure - East Asia Forum

In June 2026, South Korea’s semiconductor exports surged 199.5% year-on-year to $44.8 billion, accounting for 43.8% of total exports. Despite this impressive performance, the industry remains heavily ... Read original →

South Korea's semiconductor sector faces structural vulnerabilities amid escalating US-China tensions. Technologically, the industry's reliance on Chinese markets and equipment imports—especially for DRAM and NAND flash—has intensified under export control pressures. Compliance risks have surged, with Samsung and SK Hynix losing validated end-user status in 2025, forcing reliance on temporary licenses. Meanwhile, Chinese firms like YMTC and ChangXin are rapidly expanding domestic capabilities, threatening Korean market share. Within the next 12–24 months, if China continues to advance self-reliance, Korean manufacturers may face overcapacity and margin erosion, reshaping global supply chain dynamics.