South Korea urged to guard chip profitability as China’s CXMT and YMTC gain market share

Samil PwC's analysis points to a strategic imperative for South Korean semiconductor companies: to sharpen cost competitiveness in commodity memory while simultaneously investing more heavily in advanced technologies. The report specifically identifies advanced packaging and high-bandwidth memory (HBM) as critical areas for focus.

The report explains that HBM and advanced packaging are used together with AI processors in a stacked configuration. This detail suggests these technologies are integral to high-performance computing, particularly for artificial intelligence applications, which demand sophisticated data processing and memory solutions.

By doubling down on these specialized, cutting-edge sectors, South Korean firms could aim to differentiate themselves from Chinese competitors. This strategy implies a move towards higher-value, more complex segments of the semiconductor market, potentially leveraging existing expertise where the competitive landscape may currently be less crowded than in conventional memory.