Targeting Taiwan's Supply Chain? South Korea Invests 800 Trillion Won to Boost Semiconductor Capacity — Experts Reveal One Hidden Concern for Taiwan

In late June, the South Korean government announced a collaboration with Samsung Electronics and SK Hynix to build the country’s second-largest semiconductor cluster after the capital region. The plan includes investing 800 trillion won in the semiconductor sector and an additional 1,000 trillion won in data center infrastructure. Meanwhile, SK Hynix listed on the U.S. stock market on the 10th, aiming to expand its presence in North America. Could these moves reshape the global tech landscape? Senior tech journalist Lin Hongwen recently analyzed on the program 'Taiwan’s Great Era' that South Korea is actively transforming into an AI application powerhouse.

Lin pointed out that South Korea’s investment covers semiconductors, physical artificial intelligence (AI), and data centers. In semiconductors, the focus is on building memory wafer fabs—reinforcing its existing strength. However, there is no significant investment in weaker areas like foundry services or integrated circuit (IC) design. Lin believes South Korea is strategically doubling down on its memory leadership and deliberately avoiding expansion into foundry and design.

Regarding the 1,000 trillion won allocated to physical AI and data centers, Lin called the figure 'astonishing.' This indicates South Korea’s strong commitment to future AI applications and its ambition to build a self-sustained ecosystem. According to Lin, South Korea is no longer just a 'memory powerhouse' but is evolving into an 'AI application leader.' In contrast, Taiwan remains heavily focused on foundry manufacturing.

Lin also emphasized the significance of SK Hynix’s U.S. listing. As the market leader in high-bandwidth memory (HBM) with over 50% market share, SK Hynix’s Nasdaq debut is a strategic move to compete directly with Micron, assert its leadership, and gain pricing power. This move may also pressure Samsung to respond.

Additional exclusive reports from Feng Media:

- SK Hynix’s stock price dropped nearly 40% from its peak, but Chairman Choi Tae-won remains confident: 'Memory demand will continue to grow.'

- Nearly 70% of S&P 500 tech stocks have entered a bear market? Experts identify the root cause: 'If capital spending slows, the memory market rally is over.'

- Are memory and passive component markets cooling down? Experts name eight AI 'dark horse' stocks to watch in the second half: the new blue ocean for market capital.