• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»The Global Battle for Chip Talent: South Korea’s Strategic Dilemma
Finance

The Global Battle for Chip Talent: South Korea’s Strategic Dilemma

September 5, 2024No Comments10 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
China’s Ban of Micron Puts South Korea in the Worst of Both Worlds
Share
Facebook Twitter LinkedIn Pinterest Email

Major powers have begun competing for semiconductor manufacturing dominance as it has emerged as one of the most critical industries of the 21st century. China is pushing to become a new semiconductor power by investing heavily in cutting-edge chip manufacturing to fuel its broader geoeconomic and geopolitical ambitions. Meanwhile, the United States and Japan are striving to regain the dominant positions they held in the 1980s before losing ground to South Korea and Taiwan. 

As nations pursue various strategies to assert their influence in the semiconductor industry, the outcome of this race will ultimately be determined by who can secure the skilled workforce necessary to lead in this field.

Indeed, workforce shortages have become a critical factor in determining the success of recently announced national strategies for semiconductor dominance. For instance, the success of the U.S. quest to dominate semiconductor manufacturing will largely depend on how it addresses the workforce shortage, which is expected to reach 146,000 by 2029, while only 1,500 semiconductor engineers enter the industry each year. This shortage is already slowing down ongoing semiconductor manufacturing projects in the United States and other parts of the world.

The shortage of skilled workers has sparked a global chip talent war, with countries aggressively trying to lure experienced engineers from other countries to lead ongoing manufacturing projects and attract new talent to support future plans. In this competitive landscape, the demand for chip talent from South Korea has surged. 

Korean semiconductor engineers have been central to establishing the country’s position as a leader in cutting-edge manufacturing, particularly in areas like High Bandwidth Memory (HBM) – a critical component of graphics processing units that power generative AI systems like ChatGPT – and the semiconductor foundry business, which has become the most crucial area of semiconductor competition in the post-COVID era. As the talent war intensifies, the competition for Korean talent has also increased among major powers.

Major Powers Compete for Korean Semiconductor Talent

Competition for Korean chip talent first began with China’s ambitious “Made in China 2025” initiative, aimed at achieving self-sufficiency in semiconductor manufacturing. Recognizing the expertise of Korean engineers as vital to bridging the gap in advanced chip production – where Chinese companies still lag behind their counterparts in South Korea, the United States, and Taiwan – Chinese firms have been offering lucrative salaries to attract these skilled professionals. As a result, a number of Korean engineers have recently relocated to work for Chinese semiconductor companies, raising concerns in South Korea about potential technology leakage.

However, more serious concerns have emerged regarding the United States, a key partner for South Korea. The U.S. has announced plans to reclaim its share of chip manufacturing, which has shifted to East Asian countries, and is offering substantial incentives to U.S. companies to achieve this goal. 

See also  Dow Jones pared losses but indexes were mixed; Apple Pulls Tech Stocks Down As Chip Giant Soars On Big Win

Micron, which has been trailing its Korean competitors, Samsung and SK Hynix, in memory chip production, has received significant grants under the CHIPS and Science Act to outpace its rivals. To become a leader in the memory sector, Micron has recently hired several key engineers from both Korean companies, aiming to gain a competitive edge. Micron’s recent announcement of its plan to supply High Bandwidth Memory to NVIDIA, ahead of Samsung and SK Hynix, is widely interpreted in South Korea as benefiting from the expertise of former Korean employees now working at Micron in significant numbers.

Similarly, Intel, the leading U.S. foundry company, has received substantial subsidies and support from the U.S. government. Intel has vowed to bring manufacturing back to the United States by outperforming its rivals, Samsung and TSMC, in cutting-edge chip production. To achieve this, Intel has been actively recruiting Korean engineers and researchers known for their expertise in the semiconductor foundry business. Several of these engineers, who previously worked for Samsung’s foundry business, have already been hired by Intel, raising significant concerns in South Korea about the potential loss of talent and the risk of technology leakage.

U.S. companies are not only targeting experienced Korean engineers and researchers but also focusing on attracting new talent in South Korea. There is growing concern in South Korea that U.S. semiconductor firms are luring fresh talent as the chip competition intensifies and demand for manufacturing expertise rises in the United States. These U.S. firms are offering higher salaries and additional benefits, such as educational opportunities for employees’ children, to attract Korean talent. This trend is leading to worries in South Korea, as the United States replaces China as a major destination for skilled Korean professionals.

Demand for Korean chip talent is also on the rise in Japan, which has embarked on ambitious plans to regain its foothold in manufacturing and revive its past glory.  Japan Advanced Semiconductor Manufacturing, a joint venture between Japanese companies and TSMC, backed by the Japanese government, has started recruiting Korean talent through youth-oriented job portals in South Korea after experiencing a shortage of skilled workers domestically. To achieve its goal of becoming a key player in producing cutting-edge chips, the Japanese government-backed Rapidus has also begun recruiting Korean talent by offering attractive salaries. Japan’s focus on Korean talent is due to South Korea’s proximity and the deep expertise of its professionals in the cutting-edge foundry business.

South Korea’s Domestic Challenges in Retaining Talent

As major powers lure Korean talent amid the emerging chip talent war, South Korea has launched efforts to retain its workforce. It is significant that South Korea has been striving to maintain its status as a leading manufacturing powerhouse in the semiconductor industry, which is vital for its economic security. However, like other major powers, Korea is also grappling with a labor shortage in this sector, which is seen as a critical factor for its future dominance. Major companies like Samsung and SK Hynix are already struggling to fill skilled positions, with demand outpacing the available talent.

See also  Indonesia, Malaysia Welcome Proposed Delay to EU Deforestation Regulation

The future remains uncertain as South Korea seeks to maintain its competitive edge over its rivals. The nation plans to build the world’s largest semiconductor cluster in Yongin, an ambitious expansion that will require significant talent. However, the Korean Semiconductor Industry Association projects a labor shortage in South Korea of around 54,000 by 2031 – more than 30 times higher than the workforce shortage reported in 2022, which stood at 1,784. This could pose a significant challenge to South Korea’s aspirations in the semiconductor industry.

The Korean government is working to prevent talent and technology leaks from the country. A new law, titled the “Industrial Technology Protection Act Amendment Bill,” is currently being reviewed by the National Assembly. This bill aims to strengthen penalties for leaking core technologies, such as semiconductors. Fines are set to increase from the current 1.5 billion won ($1.1 million) to 6.5 billion won ($4.9 million), and prison sentences could extend up to 18 years. Additionally, the government is considering enhancing welfare and other benefits for experienced Korean engineers to discourage them from moving to foreign competitors.

The government is also working aggressively to develop new local talent to meet future demands. Since President Yoon Suk-yeol directed the Ministry of Education last year to intensify efforts in fostering talent for the semiconductor industry, the ministry has established new semiconductor-related departments and significantly increased enrollment quotas for these programs at universities.

However, challenges remain. In South Korea, the majority of young students now prefer to pursue medical school rather than engineering. One reason is that the careers of semiconductor engineers in South Korea are relatively short, often ending while workers are in their 40s. As a result, despite offering lucrative scholarships and secure job placements for semiconductor graduates, the best students in South Korea are not choosing engineering, leading to many department vacancies remaining unfilled. 

South Korea’s low birth rate is another concern. There will be fewer students in South Korea in the coming years as the country experiences a decline in birth rates – from 1 million babies per year in the 1970s to 700,000 in the 1990s, and roughly 400,000 in the 2000s. This will likely result in new labor shortages as the generation born in the 2000s enters the job market. According to a new study titled “Working People Are Disappearing,” by Seoul National University economics professor Chulhee Lee, cutting-edge fields like science and engineering will experience the second-highest number of labor shortages among all sectors.

See also  UBS says it has completed the takeover of Credit Suisse

South Korea’s Strategic Response: Attracting Foreign Talent

Faced with domestic challenges in securing chip talent, South Korea is turning to compete with other semiconductor powers to attract foreign talent. Indeed, as the United States, China, Japan, and Taiwan ramp up efforts to lure skilled professionals, South Korea is not far behind. To address semiconductor labor shortages, Seoul has introduced a new visa, the E-7-S, specifically designed for skilled workers in high-tech industries. 

Additionally, South Korea is making efforts to retain foreign talent after they graduate from Korean universities, as the current retention rate is low compared to other countries. To address this, Seoul has implemented a scheme similar to those in the U.S. and Japan, allowing foreign graduates in science and technology from Korean universities to more easily obtain permanent residency.

Moreover, South Korea is actively inviting foreign students to study and gain experience in high-tech fields. In this effort, the Ministry of Education launched the “Study Korea 300K” project, aiming to increase the number of foreign students from 167,000 to 300,000 by 2027, with a particular emphasis on science and technology programs. A major focus is on attracting students from countries like India, which is known for producing a large number of high-tech engineers. Universities are also separately making concerted efforts to recruit students in science and technology fields.

Looking Ahead

The future leaders of the semiconductor industry will largely be determined by who secures a sufficient amount of skilled workforce. As discussed, major powers such as the United States, China, and Japan are competing for semiconductor manufacturing dominance, with a strong focus on Korean semiconductor talent. Therefore, South Korea’s current dominance in semiconductor manufacturing will depend on how well it retains its existing talent and how effectively it develops new talent in this field. This effort faces significant challenges due to the country’s shrinking job pool beyond engineering and its low birth rate, which recently hit an all-time low of 0.7 – the lowest among all OECD countries.

Securing foreign talent remains a critical option for South Korea, but this approach presents its own set of challenges, as other countries are offering lucrative incentives and generous welfare support to attract these professionals. Consequently, Seoul must compete on this front as well. South Korea also needs to explore other strategies to address these challenges. The recent announcement by Samsung to fully automate its semiconductor manufacturing may help South Korea in this regard. 

The global chip talent war has just begun, and those who successfully secure talent will win the semiconductor battle.

battle Chip Dilemma Global Koreas South Strategic talent
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025

How China’s Companies Are Responding to the US Trade War

April 16, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Rich Californians May Lose Access to This Profitable Tax Loophole

September 17, 2023

[PHOTO] 63-year-old WWE legend looks incredibly jacked in recently shared snap

June 3, 2023

Indo-Pacific Economic Framework for Prosperity Reaches Supply Chain Agreement

June 2, 2023

Colin Kaepernick Says He Partnered with Marxist Editors Because ‘Black Liberation Simply Isn’t Possible Under Capitalism’

June 20, 2023
Don't Miss

Trump Announces First Post-Tariff Trade Deal

Business May 8, 2025

President Donald Trump announced Thursday the U.S. has reached a trade agreement with the U.K.,…

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,626)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Rivian Sinks After EV Maker Plans Convertible Note Offering

October 5, 2023

Cassie’s Husband Alex Fine Blasts Diddy

September 22, 2023

Microsoft CEO Satya Nadella to Testify About the Search Engine Wars

October 3, 2023
Popular Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.