Small Areas - Large Footprint

Following up on my last post about the surprising economic ties between China and Germany, I’m now shifting focus to two other tech powerhouses: South Korea and Taiwan.

Having visited both countries multiple times in recent years (and indulged in Korean BBQ and Chimak, pictured below :) and Taiwanese night markets), I’m continually amazed by the sheer volume of technological advancements concentrated in such small areas. These nations aren’t just rivals—they’re crucial partners in the global semiconductor supply chain, together holding over 60% of the world’s chip fabrication capacity.

Taiwan, led by TSMC, dominates with over 50% of the market, while South Korea, home to giants like Samsung Electronics and SK Hynix, commands a strong 17% share. Beyond fabrication, Taiwan’s strengths in OSAT (Outsourced Semiconductor Assembly and Test) services and South Korea’s expertise in advanced memory technologies, particularly high-bandwidth memory (HBM), highlight their essential roles in the broader ecosystem.

As AI continues to evolve, the demand for HBM is skyrocketing due to its ability to process large amounts of data at high speeds, making it a cornerstone of AI advancements. South Korea's dominance in this area positions it to significantly influence the future of AI, enabling faster, more efficient AI models and applications. With Taiwan’s complementary strengths in packaging and testing, the synergy between these two nations is expected to drive the next wave of innovation in AI, 5G, and EV technologies.

What truly surprises me is how such small regions exert such immense global influence. As demand for advanced chips in AI, EVs, and other cutting-edge technologies continues to grow, the synergy and competition between South Korea and Taiwan will be fascinating to watch.