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

Phil S. Lee, executive director at Mirae Asset Global Investments Hong Kong office, warns that Chinese chipmakers are not immediate threats to the Korean market, as they currently rank no higher than second globally in semiconductors. According to Lee, Chinese firms are consistently followers or underdogs in the industry. However, many companies are positioned at least second in various segments of the supply chain, including fabless design, foundries, and packaging.

Lee explained that China's semiconductor industry has experienced significant progress across the entire production chain. Recently, China's top DRAM maker went public, raising concerns about a potential crisis for Samsung Electronics, SK hynix, and Micron Technology, the leading memory-chip producers in Korea and the United States.

Despite China's rapid advancements across all manufacturing processes, they trail by at least two generations behind the top three competitors. Moreover, China lacks extreme ultraviolet (EUV) lithography equipment, which is necessary to close the gap with the leading companies in the near future. Lee concludes that China's primary objective is not to overtake the top companies immediately, but to prevent the existing gap from widening further.