Can Korea protect its memory semiconductor dominance?

The author is a senior editorial writer at the JoongAng Ilbo.

"Taiwan's sacred mountain that protects the nation" is a phrase used to describe Taiwan Semiconductor Manufacturing Company (TSMC), reflecting its role in safeguarding the island's economy and security through its dominance of the global foundry market. In Korea, memory semiconductors now appear to play a similar role. High bandwidth memory (HBM), a key component in the AI boom, is dominated by Samsung Electronics and SK hynix, which together account for about 80 percent of the market. Their combined share in dynamic random-access memory (DRAM) is roughly 70 percent, giving them a position that is difficult to replace in economic terms.



If Iran has the Strait of Hormuz and Taiwan has TSMC, Korea has memory semiconductors. Even as geopolitical tensions, including the conflict involving Iran, weigh on the global economy, Korea's exports reached a record $86.1 billion in March, driven largely by a sharp rise in semiconductor shipments compared to a year earlier. The domestic stock market also fluctuates in line with the performance of these companies.

The question is whether Korea can sustain this advantage.

Externally, the environment is becoming less favorable. Both the United States and China are intensifying efforts to reshape the semiconductor industry. China has designated semiconductor self-sufficiency as a core goal in its 2026—2030 economic plan announced at the National People's Congress in March. Vast financial resources and policy support are being mobilized. China's determination is underscored by its earlier "Made in China 2025" strategy, which helped it emerge as a global leader in sectors such as EVs, drones and robotics.

The United States is also shifting course. It is moving away from the previous division of labor, in which design was centered in the United States and manufacturing in East Asia, toward domestic production. Micron Technology, the world's third-largest memory chipmaker, began construction of a new plant in New York in January despite high labor costs. At the groundbreaking ceremony, U.S. Commerce Secretary Howard Lutnick emphasized that memory chipmakers face a choice between paying steep tariffs or building facilities in the United States. Tesla CEO Elon Musk has also signaled plans to enter semiconductor production in Texas.

Internal challenges are no less serious. Securing talent is the first urgent issue, as the semiconductor industry ultimately depends on skilled workers. Korea's past success in industries such as shipbuilding and nuclear energy was driven by its concentration of top talent. Today, however, medical schools attract many of the country's best students. At the same time, experienced engineers are being recruited abroad by companies in the United States and China offering significantly higher pay. Korea is already one of the world's advanced economies with high net outflows of AI talent, in part due to compensation systems that do not adequately reward performance. Moving toward a more performance-based system may be necessary.



Second, labor-management relations must be stabilized. Concerns are growing over the possibility of a strike by the Samsung Electronics union. While union demands for better compensation should not be dismissed, resorting to strikes risks undermining competitiveness. Semiconductor manufacturing requires precision and trust from global clients, and labor disruptions could weaken that trust. Notably, companies such as TSMC, Intel and Nvidia operate without unions.

Third, political interference must be minimized. Politicians have sought to attract semiconductor clusters to their own regions, often prioritizing local interests over national strategy. Such competition can lead to redundant infrastructure, weaken industrial ecosystems and accelerate the outflow of talent. It reflects a short-term approach that could damage a sector central to the national economy.

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