Korea needs to innovate beyond semiconductors
By Troy StangaroneAs the world's leading producer of memory chips, the last two years were good for South Korea's semiconductor industry. The adoption of cloud computing and the continued growth in demand for cellphones helped to usher in a super-cycle of rising prices and demand for memory chips that South Korea was well-placed to take advantage of. But for all the success of South Korea's semiconductor industry over the last two years, it also demonstrated an overdependence on memory chips.Memory chips account for all but 5 percent of South Korean production in semiconductors, making producers especially vulnerable to disruption in the memory segments and the industry overall.In a relatively short period of time, memory chips have grown from 5 percent of South Korea's exports in 2014 to just under 14 percent of exports in 2018. In contrast, automotive exports only account for around 7 percent of exports.When the recent super-cycle was taking off, South Korean exports had been stagnant the previous two years, but the growth in exports of semiconductors helped lift exports and accoun
