
A new consultancy report warns local chipmakers to defend profitability against rising Chinese rivals.
China's expanding semiconductor industry is raising concerns in South Korea, prompting Samil PwC to urge local chipmakers to defend profitability and focus on advanced sectors like HBM.
AI-generated summary
Samil PwC released a report warning South Korean chipmakers about increasing Chinese competition.
China’s expanding semiconductor industry is fuelling mounting anxiety in South Korea, where a new consultancy report has warned local chipmakers to defend profitability as Chinese rivals scale up production and strengthen market share.
Samil PwC, the South Korean member firm of the global consultancy, said in a report made public on Monday that Chinese competition would likely heat up first in the areas of conventional memory, mature-node manufacturing, and packaging and testing.
To stay ahead, Samil PwC urged South Korean semiconductor companies to sharpen cost competitiveness in commodity memory while doubling down on cutting-edge sectors such as advanced packaging and high-bandwidth memory (HBM), which are used alongside AI processors in a stacked configuration.

As demand for AI rises, foreign media analysis points out that TSMC’s revenue and profits are expected to continue to expand thanks to its advanced processes and leading position in foundry. If strong growth is maintained, the market value may challenge US$6.5 trillion in 2030.

South Korea's second-quarter current account surplus was propelled by surging demand for semiconductors, with chip exports reaching US$113.89 billion, up 181.6 per cent year-on-year.

Huida signed multi-year contracts in fields such as substrates and advanced packaging, sparking market interest in the AI supply chain. Foreign media named TSMC, Chroma Electronics and Fabrinet as the three companies that have benefited the most, with bright prospects and more stable cash flows.

The US Treasury Department released draft rules under Treasury Secretary Scott Bessent to place Chinese biotech firms under greater investment scrutiny.

On October 22, the Shandong Provincial Party Committee held a symposium on private enterprises, where provincial leaders communicated face-to-face with 70 private entrepreneurs. The meeting emphasized firm confidence and stable expectations, analyzed the opportunities and challenges faced by the development of the private economy, and proposed five key directions to promote the development of the private economy in a new, better and better way.

Server giant Weiying’s September revenue reached a new high of 172.62 billion yuan. Goldman Sachs Securities pointed out that its strong growth momentum will continue until the end of the year, and it estimates that fourth-quarter revenue will increase by more than 60% year-on-year. In response to the increase in AI server demand and CSP capital expenditure, it raised the target price from 3,777 yuan to 4,000 yuan, maintaining a "buy" rating.