Korea lags China in advanced manufacturing industry, chip tech an exception

Humanoid robots made by China’s EngineAI showcase their boxing capabilities during the Consumer Electronics Show held in Las Vegas on Jan. 7, 2026. [YONHAP]

 

China has surpassed Korea in terms of competitiveness in most advanced manufacturing industries, except for memory chip technologies, a local think tank said Tuesday.

 

China holds a significant edge over Korea in robotics, electric vehicles, batteries and non-memory semiconductors, Korea Institute for Industrial Economics & Trade (KIET) said in its latest report on the countries’ competitiveness in advanced industries. The report is based on a survey conducted on industrial experts in September.

 


By sector, Korea held a slight edge in research and development capabilities in the industrial robots sector, including product development and design, but China led in component procurement capacity, mass production and in terms of presence in overseas markets.

 

In the EV sector, Korean companies were more competitive in after-sales service with a greater combined share in the global market, while Chinese firms showed much more strength in autonomous driving technologies.

 

In the semiconductor sector, Korea continued to show leadership in memory chip technologies, but China had the upper hand in AI chip design and system semiconductors, according to the report.

 

“Competition between Korea and China has now moved beyond a simple stage of technological catch-up to a structural phase encompassing competition in industrial ecosystem, supply chains and markets,” said Cho Eun-kyo, head of KIET’s China analysis team.

 

“Korea needs to shift its industrial strategy toward boosting competitiveness in advanced manufacturing sectors by securing cutting-edge technologies, while strategically leveraging China’s industrial ecosystem,” Cho added.

Yonhap