'At least No. 2': Financial expert warns China chipmakers potentially threaten Korean market

In the world of semiconductors, no Chinese company holds the top spot globally, according to Phil S. Lee, executive director at Mirae Asset Global Investments Hong Kong office. Instead, many Chinese firms occupy positions as at least No. 2 across all segments of the supply chain, ranging from fabless design and foundries to packaging. Lee's remarks came during an interview with the Hankook Ilbo on Wednesday, where he discussed China's semiconductor industry.

Recently, China's semiconductor industry has seen a significant leap across the entire supply chain. However, Lee expressed concerns over the potential challenges this surge poses to the three leading memory-chip producers of Korea and the United States - Samsung Electronics, SK hynix, and Micron Technology. The Chinese top DRAM maker went public on July 27, sparking worries about a possible crisis for these prominent memory-chip producers.

Lee emphasized that China is at least two generations behind in manufacturing processes and lacks extreme ultraviolet (EUV) lithography equipment. Given these limitations, it remains unlikely that China will close the gap with the top three semiconductor manufacturers in the near future. While China's primary goal is not to catch up with the current leaders immediately, it aims to prevent the gap from expanding further.