Why Samsung's 'Chaebol Model' Lost to TSMC? Experts Reveal Half-Century Development Differences: How Taiwan Snatched the Juiciest Market Share

South Korea's Samsung has recently adjusted its pricing for wafer foundry services. Given Samsung's history of fierce competition with Taiwanese firms in industries such as displays and DRAM, this move has sparked renewed market attention regarding its competitive strategy—specifically, whether it is targeting TSMC.

In response, Huang Chin-Yung, founder of DIGITIMES, posted on Facebook stating that over the past half-century, both Taiwan and South Korea have risen from nothing to become exemplary emerging economies. Today, Taiwan possesses the world’s most powerful logic chip manufacturing and semiconductor testing capabilities, and its IC design industry has become a crucial partner for major U.S. cloud service providers (CSPs).

However, Huang emphasizes that the fundamental differences in development strategies and societal philosophies between the two nations will determine their shifting competitiveness in the age of artificial intelligence.

South Korea Pursues a 'Might Makes Right' Strategy, While Taiwan Grabs the Juiciest AI Market Share Through 'Coexistence and Co-Prosperity'

Huang analyzes that since the 1970s, South Korea has concentrated national resources into large conglomerates (chaebols), aiming for rapid dominance on the international stage—a strategy that has indeed yielded remarkable results. In contrast, Taiwan, constrained by limited land and high population density, developed a society rooted in small and medium-sized enterprises (SMEs), emphasizing wealth distribution among the people. Unlike South Korea, Taiwan never aimed to defeat others but instead prioritized an underlying philosophy of 'coexistence, sharing, and mutual prosperity.'

Huang notes that in the age of artificial intelligence, business opportunities are diversifying, making complete supply chains—not single brands—the key to success. Taiwan’s mutually beneficial industrial characteristics perfectly align with deep collaboration with U.S. CSPs, enabling it to capture the most lucrative segments of the AI market.

Beyond Emotional Rivalry: Huang’s Message to South Korea—Leverage Strengths Instead of Viewing Taiwan as a Fictitious Enemy

‘Looking ahead ten years, Taiwan’s industrial competitiveness will surpass that of South Korea!’ Huang stresses. He adds that South Korea will even indirectly benefit from Taiwan’s role in stabilizing the global supply chain during the AI era. Unfortunately, most South Koreans fail to grasp this broader picture, while many Taiwanese often fall into emotional comparisons between the two countries.

As a small nation, Taiwan has never had the option of ‘might makes right’—only ‘the benevolent face no enemies’ can ensure long-term sustainability, Huang asserts. Which side will endure longer in the Taiwan-South Korea rivalry? Time will provide the best answer.

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