Issue Technology sovereignty, Chinese catch-up and changing cycles as limits on Korean chip growth

Summary

KISDI also identifies factors that could limit the medium and long-term growth of Korea's semiconductor industry. Influence over global chip design and manufacturing capability is now tied to technology sovereignty, so countries are strengthening their own competitiveness. The narrowing technology gap with global rivals in advanced chips, including high-value memory and AI chips, and the rise of Chinese chip companies are named as constraints. As chip demand shifts from PCs and smartphones toward servers, cars, industry, appliances and defence, the amplitude and period of the advanced chip cycle are also expected to change. Trade wars and chip subsidy policies among major economies, the general economy, supply chain uncertainty, platform strategies of leading firms and big tech entry into chipmaking add further complexity.