Changes in Geopolitics of Semiconductors and Directions for Korea

The US and EU have reached consensus on one strategic objective: reducing their reliance on Northeast Asia for semiconductor manufacturing built up over the past 30 years. Since the 1950s, the global semiconductor industry has experienced continued structural transition and extensive specialization due to the advent of many technological innovations, new products, and geopolitical factors. Signs of structural change are again apparent today. Korea’s response to these changes will serve as a watershed, diverging from the paths taken by Japan and Taiwan since the 1980s. Accordingly, accurate forecasts on the topography of the industry, plans to secure competitive advantage in global value chains based on these projections, and a comprehensive international strategy centering on cooperation with allies are urgently needed