◎Xue Yan, our reporter in South Korea
In order to demonstrate the attractiveness of the semiconductor industry, the semiconductor major of Pohang University of Science and Technology in South Korea held banquets in December 2022 at the Guest House of Shilla Hotel in Seoul and the Park Hyatt Hotel in Haeundae, Busan.
The Guest House of the Shilla Hotel used to hold large-scale events, including the Presidential Inauguration Dinner and various diplomatic dinners, which shows how much the university attaches importance to this event.
At the banquet, professors and tutors warmly introduced various special offers such as discipline prospects and full scholarships.
However, the high school students and parents who participated in the dinner were quite embarrassed, because quite a few of them would not choose to report to the semiconductor major after the event.
In October 2022, South Korean President Yin Xiyue presided over the first national science and technology advisory meeting since he became president.
The 12 strategic technologies selected by the Korean Ministry of Science, Technology and Information Communication were announced at the conference.
Among them, the technology of the semiconductor industry is listed as the first, which shows that the South Korean government attaches great importance to the development of technology in related fields.
However, the government's policy preference and capital investment cannot restore the decline of the Korean semiconductor industry and the continuous loss of semiconductor talents.
tighten your belt
Samsung Electronics, a leading company in the Korean semiconductor industry, holds a global strategy meeting in June and December each year. Executives at home and abroad jointly study the business status of various departments and regions, and exchange views on business goals and marketing strategies for the next half year.
The Samsung Electronics global strategy meeting in December 2022 made Samsung Electronics employees a little uneasy, because the theme of the meeting was how to overcome the difficulties. With the downturn in the semiconductor sector, the company may reduce expenditure by reducing production and layoffs.
On January 31, 2023, Samsung Electronics announced the accurate performance of the company and each business unit for the fourth quarter of 2022.
The operating profit of Samsung Electronics' semiconductor division in the quarter was 270 billion won (about 1.48 billion yuan), a sharp drop of 97% from the same period in 2021 (8.84 trillion won, or about 48.5 billion yuan).
At the same time, SK Hynix, South Korea's second largest semiconductor company, announced its results for the fourth quarter of 2022, with an operating loss rate of 22%.
The sharp drop in demand for global storage semiconductors and the sharp drop in prices have resulted in a significant reduction in the operating profits of Korean semiconductor companies, which have a dominant position in the field of storage semiconductors.
SK hynix said that as the uncertainty of the business environment increases, the company will reduce the scale of investment.
Uncertainty in investing in the US increases
On the one hand, operating profits have plummeted, and on the other hand, the value of the Korean won has fluctuated sharply. The large-scale investment in the United States originally announced by Korean semiconductor companies is also facing more and more uncertainties.
In May 2022, Samsung Electronics announced that it would invest US$17 billion in the construction of a semiconductor commissioned production plant in the United States. According to the announcement, the exchange rate at that time was about 19 trillion won. further volatility.
Samsung Electronics stated that the investment project in the United States will take a long time, and labor costs will continue to increase. The actual investment amount may exceed 30 billion US dollars by the end of the project.
Calculated in Korean won, the actual scale of Samsung Electronics' investment in the United States will nearly triple.
SK Group Chairman Choi Tae-won told U.S. President Joe Biden in July 2022 that he would invest $22 billion in the U.S., but as the exchange rate fluctuates, SK Group stated that investment execution will be carried out flexibly according to actual market conditions.
Dinner can't keep talent
In order to support the semiconductor industry, a national strategic industry, the South Korean government has greatly increased the budget for semiconductor talent training. In 2023, the semiconductor talent-related budget will increase from 180 billion won in 2022 to 450 billion won. The number has increased to 26,000, but the actual situation is quite different from the government's wishes.
It was like the embarrassment pervading at the dinner party under the name of "Semiconductor Engineering Admissions Seminar".
A total of 40 students from the Department of Semiconductor Engineering of Pohang University of Science and Technology will select the first batch of freshmen for the new school year of 2023. All of these students will be guaranteed employment at Samsung Electronics, with full tuition, free accommodation, special scholarships, and exceptional discounts for overseas internship opportunities .
However, during the actual pre-registration period for applicants admitted to Pohang University of Science and Technology, quite a number of admitted applicants have not decided whether to register or not.
Among the 84 temporary admissions of Yonsei University, Korea University, and Hanyang University’s semiconductor-oriented majors in 2023, 58 (69%) gave up registration and chose other majors, and more admitted students gave up the full scholarship guarantee With the opportunity to work in Samsung Electronics and SK Hynix, I chose medicine and pharmacy.
Most of the science students with excellent grades choose the medical university when they are dually enrolled in the engineering university and the medical university.
A related person from the Korea Institute of Science and Technology said that after the university entrance examination, the enrollment of medicine, pharmacy and dentistry is full, and students have to choose engineering. The semiconductor major is also bleak in engineering.
Therefore, when the semiconductor industry is going through a cold winter, the South Korean government may just be wishful thinking.