1,466 words, 8 minutes read time
According to a briefing titled “In-depth Analysis of Technological Levels in Three Game-Changing Fields” released by the Korea Institute of Science and Technology Evaluation and Planning (KISTEP) on February 23, a survey conducted by 39 domestic semiconductor experts revealed that China has surpassed South Korea in the fundamental capabilities of all semiconductor technology fields except for advanced packaging.
Specifically, China and South Korea are on par in advanced packaging, but China leads in all other areas.
Moreover, they believe that South Korea only has an advantage in processing and production, while China excels in “foundational, core technologies, and design.”
The news has been out for several days, but it hasn’t garnered much attention in China, possibly because it has embarrassed certain intellectuals.
Some might say, what’s so impressive about surpassing South Korea? Why not compare with the United States? That’s not the point. South Korea’s position in the semiconductor industry is not to be underestimated.
Simply put, South Korea is the leader in memory chips, with Samsung Electronics and SK Hynix controlling 70% of the global market share.
In terms of total global semiconductor market sales, South Korea ranks second with a 22% market share, just behind the United States.
If the United States is the champion, then South Korea is the runner-up. We need to surpass the runner-up before we can challenge the champion.
However, before China can celebrate, let’s discuss why South Korea’s semiconductor industry is so strong. Surpassing South Korea doesn’t mean their experience has no value.
China and South Korea share similar cultures, and the logic behind the rise of their semiconductor industries has many similarities. For example, South Korea also has an extremely intense focus on STEM education, with a level of competition far exceeding that of China. The much-criticized exam-oriented education in China has actually supplied a large number of talents to South Korea’s semiconductor industry.
Additionally, South Korea also has a “big government” approach, implementing industrial policies and expanding market share through counter-cyclical investments. Simply put, when the semiconductor industry is in a downturn, the free market naturally reduces investment, but South Korea uses government subsidies to expand production and wage price wars, thereby squeezing competitors’ market shares.
As some Chinese economists would say, South Korea is “government intervention in the economy,” which is not free. Why do these economists’ ideas seem so out of touch with reality?
Because their knowledge is still stuck in Western classical economics, with a near-blank understanding of history. They turn a blind eye to contemporary events, repeatedly reciting the dogmas of market fundamentalism, unable to combine theory with reality.
While the real world is driven by practical problems and moves forward, their thoughts are frozen at a certain historical moment, repeatedly complaining that the world cannot return to the way they understand it, and repeatedly blaming the system.
Since China and South Korea share similar educational environments and policy approaches, why has China been able to surpass South Korea?
This delves into the level of national psychology. Let me tell you a little story.
One year, I was working on a project with a Korean. After we got to know each other privately, we started talking about culture. This Korean friend was quite friendly towards China. One time, he told me: “You Chinese can’t just imitate Korea; one day, you must have your own culture.”
I was stunned. Could you elaborate, buddy?
The Korean said, “Chinese culture everywhere learns from Korea. For example, take this folk custom—you also celebrate the Spring Festival, but you need to develop your own culture.”
I was speechless.
This Korean’s mentality is essentially a cultural inferiority complex, masked by cultural arrogance.
It’s like in life. Truly capable people are modest and reserved, while those who are empty inside need to make a big show.
Korea’s distorted mentality stems from being a “culturally rootless” nation, while living next to the oldest continuous culture in the world. Even more tragically, this neighboring country has successfully modernized without severing its cultural roots.
There’s an old internet joke: Someone finds a secret manual. The first page says, “To master this skill, you must first castrate yourself.” So, gritting his teeth, he does it. Then he turns to the second page, which says, “If you don’t castrate yourself, you will surely succeed.”
This is how South Korea feels as it sees one industry after another being surpassed by us.
Historically, the Korean Peninsula was part of China. After the establishment of South Korea, to “embrace modernization,” it adopted Western culture, abolished Chinese characters, and severed ties with Chinese civilization. The pain of this “cultural severance” is something we cannot understand.
Why do some Chinese people always complain whenever China achieves something good? It’s because our progress awakens their memories of “severance.” If South Korea had led China economically and technologically because of its decisive “severance,” they could comfort themselves that it was a necessary cost. But now, as China gradually surpasses them, we can only imagine their conflicted feelings.
So, what factors have prevented South Korean companies from continuing to break through?
On the surface, it’s due to the monopolistic and conservative nature of the chaebols (large family-controlled business conglomerates), but this explanation doesn’t fully hold water because when they rose to prominence, the chaebols were also monopolistic. Moreover, South Korea is a highly export-oriented economy with no room for being closed and conservative.
The deeper reason lies in the cultural aspect.
Due to cultural severance and the fact that it is effectively controlled by the United States, South Koreans lack confidence in their souls.
The most important prerequisite for technological innovation is believing that you can do better than everyone else and set new world records in the industry.
Only with this mindset will you dare to try and have the possibility of success.
Why is Chinese confident?
Because China was so glorious in history and they have inherited their ancestors’ way of thinking, so why wouldn’t China succeed?
To put it in terms that people would understand: How you live your life determines how your descendants will write about you in the family genealogy.
The benefit of having a real history is that it makes the elite believe that their actions will be faithfully recorded for thousands of years.
We know what people did two thousand years ago, which means that two thousand years from now, people will know what we did.
Chinese history is a credit system spanning thousands of years, driving generations of elites to strive for “leaving a legacy of fame.”
The West doesn’t have this concept. Everything they do is for themselves. Even if it’s to go to heaven after death, it’s for themselves to go to heaven.
Besides confidence, traditional culture also provides Chinese with wisdom.
Why is it that while learning science and technology, some Chinese can continue to create, while others can only follow behind Westerners?
Because their grasp of traditional culture differs.
Those who understand traditional culture have scientific knowledge that is reconstructed based on Chinese culture—it’s “Sinicized science,” living knowledge that can continue to grow and change according to real needs.
Those who don’t understand traditional culture have scientific knowledge that is a dead snapshot of Western science at a certain stage, a mechanical imitation that cannot adapt.
The depth of understanding of traditional culture determines the height that scientific research can reach.
Culture is wisdom tested over thousands of years. Without culture, how can one innovate when faced with new problems?
Nowadays, there are many so-called “innovation training camps” that promote nonsensical things. They have completely misunderstood the definition of innovation.
Innovation is solving new problems under the guidance of the wisdom of our predecessors.
First, one must understand the wisdom of our predecessors, that is, culture, and then tackle new problems.
Westerners inherit “ancient Greek rational civilization,” using logic to confront the real world head-on. We emphasize using softness to overcome hardness, using minimal effort to solve big problems.
Chinese cultures are different, and who is more skilled will be decided in the fair competition of modern technology.
Those without culture don’t even have the qualification to compete.
South Korea’s tragedy is that, in the eyes of Westerners, they refuse to abandon traditional Chinese customs—loyalty that is not absolute is absolute disloyalty.
In the eyes of Chinese people, they have even abandoned Chinese characters, effectively betraying the Chinese civilization circle.
Some Chinese people should take South Korea as a warning.
The technological competition between China and the United States is a cultural contest, not a physical one. It’s about determining who has the qualifications to lead human civilization. After this competition ends, both sides may still shake hands and make peace.
But those who are recognized as betrayers by both sides will not be accepted by either.
