Despite ongoing US efforts to curb China’s technological advancements, reports from South Korea indicate a troubling reality: China’s semiconductor industry is rapidly catching up, posing a significant challenge to South Korean dominance in the Chinese market.
Contrary to initial expectations, US pressure hasn’t significantly weakened China’s industrial competitiveness. In fact, China has not only solidified its position in smartphones and displays but is also making remarkable strides in the crucial semiconductor sector, mirroring South Korea’s own advancements.
US Restrictions Accelerate China’s Self-Sufficiency Drive
This is evident in the Chinese smartphone market, where domestic brands have now taken a clear lead over South Korean giants like Samsung. Data shows Samsung’s market share in foldable phones plummeted to a mere 5.9% in the first quarter of 2024, a significant drop from last year’s 11%, pushing it down to fifth place.
Huawei‘s resurgence is also a prime example. Despite US efforts to sideline them, they’ve made significant strides. Their latest Pura 70 series boasts mostly Chinese-made components, showcasing their ability to adapt and thrive under restrictions. This has fueled a national push for self-sufficiency in China.
Recent US export regulations restricting access to advanced AI processors and manufacturing equipment have only accelerated this shift. A new subsidy plan aims to bolster domestic computing capabilities by encouraging the use of Chinese GPUs and promoting self-sufficiency in AI semiconductor technology.
Furthermore, Chinese companies are surpassing South Korea in the OLED panel market, a key component in displays. While a gap remains in cutting-edge semiconductor technology, China exhibits undeniable growth momentum, particularly in storage solutions.
This rapid rise has significant implications for South Korea’s tech industry. Their once-dominant position in the Chinese market is shrinking, with domestic Chinese players taking over significant market share. This trend raises concerns about South Korea’s ability to maintain its competitive edge in the face of China’s aggressive technological advancements.
The US strategy of pressuring China’s semiconductor industry seems to be backfiring, inadvertently accelerating China’s self-sufficiency and competitiveness. This development necessitates a reevaluation of the global tech landscape, where South Korea might need to adapt its strategies to navigate the changing dynamics of a rising Chinese tech giant.
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(Via)
