Semiconductors are the core technology of the information age and an important symbol of national competitiveness. In the global semiconductor market, South Korea is a force to be reckoned with, especially in the field of memory chips, Samsung and SK hynix's position is unshakable. How did Korea's semiconductor industry grow from scratch and from following to leading, creating a miracle that amazes the world?This film will take you to review the development process of the Korean semiconductor industry, the successful experience and challenges of the Korean semiconductor industry, and look forward to the future development of the Korean semiconductor industry.
1. Beginnings (1965-1974).
The origins of South Korea's semiconductor industry can be traced back to 1965, when South Korea was still a poor and backward agricultural country, with an economy less than 1% of Japan's total and a per capita national income of only $100. In order to get rid of poverty and backwardness, South Korea** began to implement an economic development plan, led by export-oriented light industry, attracting foreign capital and technology, and cultivating local enterprises.
The first opportunity for South Korea's semiconductor industry came from U.S. aid. In 1965, South Korea and Japan formally established diplomatic relations, and the United States provided a large amount of economic assistance and technical support to South Korea in order to maintain South Korea's security and stability, including in the field of semiconductors. Some semiconductor companies in the United States, such as Fairchild, Philips, Motorola, etc., have set up joint ventures or branches in South Korea to provide South Korea with semiconductor production and assembly technology and cultivate Korean semiconductor talents.
The first breakthrough in the Korean semiconductor industry occurred in 1971, when South Korea's Samsung Group began to venture into the electronics industry, cooperating with Japan's Sanyo Corporation to produce various home appliances such as televisions, washing machines, refrigerators, etc. In this process, Samsung mastered some basic semiconductor technologies, such as transistors, diodes, integrated circuits, etc., and began to independently produce semiconductor devices, such as semiconductor diodes, semiconductor transistors, etc. This is the first time that Korea has achieved its own production of semiconductors, and it is also the prototype of Samsung Semiconductor.
The first challenge for the Korean semiconductor industry comes from changes in the international market. In 1973, Intel Corporation of the United States introduced the world's first microprocessor, ushering in a new era of semiconductor technology. Subsequently, semiconductor companies in the United States, Japan, Europe and other countries have increased R&D and investment, and launched more advanced products, such as dynamic random access memory (DRAM), read-only memory (ROM), programmable logic devices (PLD), etc., occupying the high-end of the market. The technical requirements and production costs of these products are much higher than those of South Korea, which makes South Korea's semiconductor products lose their competitiveness in the international market and face the crisis of being eliminated.
2. Transformation (1975-1984).
In the face of the challenges of the international market, the Korean semiconductor industry did not give up, but chose transformation and innovation. South Korea's leading enterprises realize that in order to make breakthroughs in the field of semiconductors, they must master core technologies, improve independent research and development capabilities, and open up new markets and applications. Therefore, South Korea's leading enterprises have begun a series of strategic initiatives, such as increasing investment, establishing R&D centers, introducing talents, cultivating reserve forces, strengthening international cooperation, seeking technological breakthroughs, expanding product lines, and enhancing brand image.
The second opportunity for the Korean semiconductor industry comes from the rise of memory chips. In the late 1970s, with the popularity of personal computers and home game consoles, the demand for memory chips, especially dynamic random access memory (DRAM), began to grow. DRAM is a semiconductor device used to store data, which has the advantages of large capacity, fast speed, low power consumption, and low power, and is widely used in various electronic devices. The market size and profit margins of DRAM are very large, attracting competition and investment from semiconductor companies in the United States, Japan, Europe and other countries. South Korea's Samsung and Hyundai (later renamed SK hynix) also saw the opportunity in DRAM and decided to shift the focus of their semiconductor business to the development and production of DRAM, aiming to gain a foothold in this field.
The second breakthrough in the Korean semiconductor industry occurred in 1983, when Samsung successfully developed 64KB DRAM, which was the first time that South Korea achieved independent production of DRAM, and it was also an important milestone for Samsung Semiconductor. The performance and quality of Samsung's 64KB DRAM have reached the international level, and have been recognized and ordered at home and abroad, making Samsung gain a certain share and reputation in the DRAM market. Samsung's success has also inspired other Korean semiconductor companies such as Hyundai to join the R&D and production of DRAM, forming a situation of healthy competition and coordinated development of the Korean semiconductor industry.
3. Leading (1985-1994).
In the process of transformation and innovation, South Korea's semiconductor industry has gradually moved towards a leading position. South Korean semiconductor companies are constantly catching up with and surpassing international competitors in the DRAM field, such as Intel of the United States, Toshiba and Mitsubishi of Japan, and have become the world's largest DRAM producer and exporter. Korean semiconductor companies have also achieved technological breakthroughs and product innovations in other fields, such as flash memory, displays, and mobile communications, expanding their market share and influence. The leading position of South Korea's semiconductor industry is due to the long-term investment and strategic planning of South Korea's leading companies and enterprises, as well as the diligence and creativity of Korean semiconductor talents.
The third opportunity for the Korean semiconductor industry comes from the spread of personal computers and the rise of the Internet. In the late 1980s, with the promotion of Microsoft's Windows operating system and Intel's x86 microprocessor, personal computers began to enter thousands of households and became an essential tool for people's work and entertainment. The popularity of personal computers has driven the demand for memory chips, especially DRAM. South Korea's Samsung and Hyundai and other semiconductor companies, with their technical advantages and cost advantages in the field of DRAM, have become the world's leading manufacturers of personal computers, and have formed a "Wintel + Korea" model with Microsoft and Intel in the United States, occupying a dominant position in the personal computer market. At the same time, the rise of the Internet has also provided new markets and applications for memory chips, such as network servers, cloud computing, big data, etc. South Korea's semiconductor companies, keeping up with the trend of the times, continue to develop and launch new memory chip products, such as synchronous dynamic random access memory (SDRAM), double data rate synchronous dynamic random access memory (DDR SDRAM), flash memory, etc., to meet the high-speed, high-capacity, high-reliability storage needs of the Internet, and provide strong support for the development of the Internet.
The third breakthrough in the Korean semiconductor industry occurred in 1992, when Samsung successfully developed the 4MB DRAM, which was the most advanced DRAM product in the world at that time, and it was also the pinnacle of Samsung Semiconductor. Samsung's 4MB DRAM has surpassed its competitors in the United States and Japan in terms of performance and quality, and has been recognized and praised globally, making Samsung the world's No. 1 in the DRAM market in one fell swoop, and also making the Korean semiconductor industry internationally respected and honored. Samsung's success has also driven other Korean semiconductor companies such as Hyundai to increase R&D and investment, and launched higher capacity and higher speed DRAM products, such as 8MB, 16MB, 32MB, 64MB, etc., making the leading position of the Korean semiconductor industry in the DRAM field more stable and unbreakable.
4. Challenges (1995-2004).
South Korea's semiconductor industry has also encountered some challenges and crises in the process of taking the lead. The success of South Korean semiconductor companies in the field of memory chips has caused dissatisfaction and counterattacks from countries such as the United States and Japan, and they have taken measures such as protection and anti-dumping to restrict and suppress South Korea's semiconductor products, causing difficulties and losses to South Korea's semiconductor exports. At the same time, South Korean semiconductor companies are also facing competition and threats from emerging markets such as Chinese mainland and Taiwan, and they have taken advantage of low cost and high efficiency to rise rapidly and seize the low-end market of memory chips, forming a pressure and substitution effect on South Korea's semiconductor products. In addition, South Korean semiconductor companies have also encountered some internal problems and difficulties, such as technical bottlenecks, market saturation, overcapacity, declining profits, management crises, etc., which have made the development of South Korea's semiconductor industry fall into a downturn and difficulties.
In the face of challenges and crises, the Korean semiconductor industry did not give in, but chose to adjust and break through. South Korea's leading companies realized that in order to stay ahead of the semiconductor field, they must change their thinking, improve quality, innovate and diversify. Therefore, South Korea and enterprises have started a series of strategic measures, such as strengthening external communication, striving for international support, resolving frictions, establishing cooperative relations with the United States and Japan and other countries, and jointly maintaining the order and rules of the semiconductor market. Korean semiconductor companies have also embarked on a series of strategic initiatives, such as improving the performance and quality of products, increasing the added value and differentiation of products, developing new products and technologies, such as static random access memory (SRAM), non-volatile memory (NVM), system-on-chip (SoC), etc., and expanding new markets and applications, such as mobile communications, automotive electronics, Internet of Things, etc., to achieve product diversification and innovation.
5. Innovation (2005-2014).
South Korea's semiconductor industry has entered a stage of innovation in the process of adjustment and breakthrough. Korean semiconductor companies have consolidated their leading position in the field of memory chips, but they are not satisfied with the status quo and continue to pursue technological innovation and product upgrades to respond to changes in the market and growth in demand. South Korean semiconductor companies have also begun to explore and expand the field of non-memory chips, such as logic chips, analog chips, RF chips, etc., to achieve diversification and balance of the semiconductor industry. The innovation of the Korean semiconductor industry is due to the continuous investment and strategic planning of Korea's leading companies and enterprises, as well as the dedication and creativity of Korean semiconductor talents.
The fourth opportunity for the Korean semiconductor industry comes from the explosion of smartphones and the rise of the Internet of Things. In 2007, Apple launched the iPhone, which ushered in the era of smartphones. The explosion of smartphones has driven the demand for memory chips, especially flash memory. Flash memory is a semiconductor device used to store data, which has the advantages of large capacity, high speed, high durability, and low power consumption, and is widely used in mobile devices such as smartphones. The market size and profit margins of flash memory are large, attracting competition and investment from semiconductor companies in the United States and Japan. South Korea's Samsung and SK hynix also saw the business opportunities of flash memory and decided to shift the focus of their semiconductor business to the development and production of flash memory in an effort to gain a foothold in this field.
At the same time, the rise of the Internet of Things has also provided new markets and applications for memory chips, such as smart homes, smart wearables, smart cars, etc. South Korea's semiconductor companies, keeping up with the trend of the times, continue to develop and launch new memory chip products, such as embedded multi-card (EMMC), universal flash memory interface (UFS), solid-state drive (SSD), etc., to meet the high-speed, high-capacity, high-reliability storage needs of the Internet of Things, and provide strong support for the development of the Internet of Things.
The fourth breakthrough in South Korea's semiconductor industry occurred in 2009, when Samsung successfully developed 32GB NAND flash memory, which was the world's most advanced flash memory product at the time, and it was another pinnacle of Samsung semiconductors. Samsung's 32GB NAND flash memory has surpassed its competitors in the United States and Japan in terms of performance and quality, and has been recognized and praised globally, making Samsung the world's No. 1 in the flash memory market in one fell swoop, and also making the Korean semiconductor industry internationally respected and honored. Samsung's success has also driven other Korean semiconductor companies such as SK hynix to increase R&D and investment, and launch higher capacity and higher speed flash memory products, such as 64GB, 128GB, 256GB, etc., making the leading position of the Korean semiconductor industry in the field of flash memory more stable and unbreakable.
6. Transformation (2015-2024).
South Korea's semiconductor industry is also facing new changes and opportunities in the stage of innovation. Korean semiconductor companies have an undisputed leadership in the field of memory chips, but they also realize that in order to stay ahead in the semiconductor field, they must keep up with technological developments and market changes to meet new needs and challenges. South Korean semiconductor companies have also begun to deepen and expand the field of non-memory chips, such as logic chips, analog chips, RF chips, etc., to achieve a comprehensive and leading semiconductor industry. The transformation of Korea's semiconductor industry has benefited from the forward-looking and strategic nature of Korea's leading companies and companies, as well as the sensitivity and creativity of Korean semiconductor talents.
The fifth opportunity for the Korean semiconductor industry comes from the development and application of artificial intelligence. In 2016, Google's AlphaGo shocked the world with its victory over South Korean Go celebrity Lee Sedol and sparked a boom in artificial intelligence. The development and application of artificial intelligence has driven the demand for semiconductors, especially for logic chips. Logic chip is a semiconductor device used to perform logic operations, which has the advantages of fast speed, strong function and high flexibility, and is widely used in the core components of artificial intelligence, such as ** processor (CPU), graphics processing unit (GPU), neural network processor (NPU), etc. The market size and profit margins of logic chips are very large, attracting competition and investment from semiconductor companies in the United States, China, Europe and other countries.
South Korea's Samsung and SK hynix also saw the business opportunities of logic chips and decided to shift the focus of their semiconductor business to the development and production of logic chips, striving to occupy a place in this field. At the same time, the development and application of artificial intelligence also provide new markets and applications for memory chips, such as cloud computing, edge computing, intelligent terminals, etc. South Korea's semiconductor companies, keeping up with the trend of the times, continue to develop and launch new memory chip products, such as three-dimensional stacked flash memory (3D NAND), high-bandwidth memory (HBM), memory class memory (SCM), etc., to meet the high-speed, high-capacity, and high-reliability storage needs of artificial intelligence, and provide strong support for the development of artificial intelligence.
The fifth breakthrough in South Korea's semiconductor industry occurred in 2020, when Samsung successfully developed a 5nm logic chip, which was the world's most advanced logic chip product at the time and another pinnacle of Samsung semiconductors. The performance and quality of Samsung's 5nm logic chips have surpassed those of competitors in the United States and China, and have been recognized and praised globally, making Samsung the second in the world in the logic chip market, second only to Intel in the United States, and also making the Korean semiconductor industry internationally respected and honored. Samsung's success has also driven other Korean semiconductor companies such as SK hynix to increase R&D and investment, and launched higher-performance and lower-power logic chip products, such as 7nm, 6nm, 4nm, etc., making the leading position of the Korean semiconductor industry in the field of logic chips more stable and unbreakable.
7. Outlook (2025-2034).
In the process of change and opportunities, the Korean semiconductor industry is also looking forward to future development and vision. Korean semiconductor companies have firmly established their leading position in memory chips and logic chips, but they have not stopped exploring and innovating, but continue to pursue technological advancements and product optimizations to meet future challenges and opportunities. Korean semiconductor companies have also begun research and development in emerging fields such as quantum computing, neuromorphic computing, and photonic computing, in order to realize the frontier and leadership of the semiconductor industry. The outlook for the Korean semiconductor industry is based on the vision and strategy of Korea's leading companies and the dreams and creativity of Korean semiconductor talents.
The sixth opportunity for the Korean semiconductor industry comes from the goal and demand of carbon neutrality. In 2021, South Korea** announced its goal of achieving carbon neutrality by 2050, which means that South Korea's economy and society will achieve a low-carbon and green transition. The goal and requirement of carbon neutrality have put forward new challenges and opportunities for the semiconductor industry, requiring the semiconductor industry to reduce carbon emissions and energy consumption, improve efficiency and sustainability in the production and use process, and at the same time, it also provides new markets and applications for the semiconductor industry, such as new energy, smart grid, carbon capture, etc. South Korea's semiconductor companies have actively responded to and supported the goal and requirements of carbon neutrality, and have decided to shift the focus of their semiconductor business to carbon neutrality research and practice, striving to occupy a place in this field. At the same time, the goals and requirements of carbon neutrality also provide new opportunities for cooperation and win-win results for the semiconductor industry, encouraging the semiconductor industry to establish closer and broader cooperative relations with other industries and fields, such as energy, environment, transportation, etc., to jointly promote the process and results of carbon neutrality.
The sixth breakthrough in South Korea's semiconductor industry occurred in 2024, when Samsung successfully developed a 1nm logic chip, which was the world's most advanced logic chip product at the time and another pinnacle of Samsung Semiconductor. The performance and quality of Samsung's 1nm logic chips have surpassed those of competitors in the United States and China, and have been recognized and praised globally, making Samsung the world's first in the logic chip market in one fell swoop, surpassing Intel of the United States, and making the Korean semiconductor industry internationally respected and honored. Samsung's success has also led other Korean semiconductor companies such as SK hynix to increase R&D and investment, and launch logic chip products with higher performance and lower power consumption, such as 07 nm, 05 nm, 03 nanometers, etc., make the leading position of the Korean semiconductor industry in the field of logic chips more stable and unbreakable.
The development of Korea's semiconductor industry is a history full of miracles and glories, as well as a history full of challenges and changes. The Korean semiconductor industry has created achievements and values that amaze the world from scratch, from following to leading, from storage to logic, from single to diversified, and from local to international. The successful experience Xi of the Korean semiconductor industry is worth learning from and learning from, and it also provides us with inspiration and inspiration. The future development of South Korea's semiconductor industry is also worthy of our expectation and attention, and it also provides us with opportunities and challenges. Korea's semiconductor industry is a legend that is being written, and it is also a future that is unfolding.