South Korea's semiconductor industry faces crisis as top students choose medical schools

Despite stable job prospects at major firms like Samsung Electronics and SK hynix, the admission withdrawal rate for top semiconductor departments surged to 179% in 2024, according to The Korea Herald.

The Ministry of Trade, Industry, and Energy estimates a shortfall of 56,000 chip engineers by 2031.

Experts warn that South Korea risks lagging behind global rivals like China and the U.S., both investing heavily in AI and semiconductor research.

"China is set to invest 1,800 trillion won (US$1.24 billion) in AI over the next five years until 2030. The U.S. is also committing $500 billion under the Stargate Project. Korea’s investment last year amounted to just 1.8 trillion won," Rep. Ahn Cheol-soo of the ruling People Power Party, a former physician and founder of South Korean cybersecurity firm AhnLab, said.

"How can we catch up? China has 410,000 AI researchers and the U.S. has 200,000. South Korea has fewer than 20,000."

Lee Jong-hwan, a system semiconductor engineering professor at Sangmyung University, cited China’s DeepSeek AI model as an example of how strategic talent development fuels innovation.

"In Korea, top talent is drawn to medical schools. At prestigious universities, even those enrolled often retake the college entrance exam to pursue medical school," he said.

Although the government has expanded semiconductor-related university programs, experts argue that a structured workforce development plan is crucial.

The country also struggles to retain highly skilled professionals, as global chipmakers offer lucrative salaries that lure Ph.D. graduates abroad.

"I had received a job offer from Qualcomm, but I chose Samsung, and I was an unusual case among my colleagues," said a semiconductor engineer with a Ph.D. in chip engineering from a top-tier university, speaking on condition of anonymity.

Enrollment in semiconductor graduate programs continues to decline, with Sungkyunkwan University’s rate dropping from 17.6% in 2021 to 15.8% in 2023.

Industry leaders emphasize the need to improve social perceptions and offer better incentives for semiconductor professionals to safeguard South Korea’s future in the global chip race.

"Social perceptions and treatment of the semiconductor and engineering fields should undergo significant changes for the future of the chip industry," Lee said.