China's push into semiconductors has advanced to the point where it is breathing down Korea's neck. Yangtze Memory Technologies, China's largest NAND flash maker, climbed to third place in global NAND shipments in the second quarter, overtaking Japan's Kioxia and the U.S.-based Micron Technology, according to research firm Counterpoint on the 16th. Its share of NAND revenue reached 14%, closing in on Samsung Electronics (005930.KS) at 28% and SK hynix (000660.KS) at 19%. Having focused until now on commodity NAND, Yangtze Memory is expanding into higher-margin enterprise products, signaling a head-to-head contest with Korean firms.
The picture is much the same in DRAM. ChangXin Memory Technologies, China's leading DRAM maker, recently declared with confidence that it will release products this year using 4F², a next-generation cell structure. Samsung Electronics is developing the same technology with mass production targeted for around 2028, meaning ChangXin would be two years ahead. That amounts to a declaration of war on the next-generation DRAM market. Some view it as overblown technology marketing, but advanced capabilities built up in such a short span can only sound an alarm for Korea's chip industry.
What makes China's rapid progress most threatening is that it has come under U.S. export controls and a technology blockade. Washington has identified Chinese semiconductors as a core threat to its economy, security and military, and has layered on restrictions: limits on advanced artificial intelligence chip exports, controls on chipmaking equipment, sanctions on individual companies and coordination with allies. China, for its part, is pressing ahead through astronomical policy funding, the training of science and engineering talent, deregulation and the localization of technology. Apple CEO John Ternus, speaking the same day about the memory supply crunch, said the company would "keep all options in mind" — a remark widely read as hinting at the possible use of Chinese-made memory, and one that underscores China's changed standing in chips.
What is required of us now is the courage to face reality and a firm will to respond. The government, the political establishment and companies alike must tighten their guard and stake everything on developing technology that keeps Korea far ahead. Remaining trapped in outdated ideological frames — viewing support for large companies with suspicion, or putting off regulatory reform such as greater labor flexibility — is a road to self-destruction. We must not forget that a moment's complacency or even a small policy error leads straight to being left behind.