A few days ago, the media reported that South Korea’s shipbuilding industry has been overtaken by China. This made the Korean media lament what happened to South Korea’s manufacturing industry, and why it could only end in failure when it was paired with Chinese manufacturing. In fact, South Korea has been defeated by China in many industries. And there are many industries that are still facing the strong challenge of Chinese manufacturing.
1. Chinese manufacturing beats Korean manufacturing industry
In the above-mentioned shipbuilding industry, the transaction volume of new ships in China will reach 20.82 million tons in 2022, accounting for 49% of the market share; the transaction volume of the Korean shipbuilding industry will be 16.27 million tons, accounting for 38% of the market share; The share is 4 percentage points, while the Korean shipbuilding industry has dropped by exactly 4 percentage points, showing that the Chinese shipbuilding industry is still steadily encroaching on the Korean shipbuilding industry's market.
In addition to the shipbuilding industry, China has also achieved an absolute advantage in the power battery industry. The revenue of a company in the Ningde era will reach 189.2 billion yuan in 2022, and the three major battery companies in South Korea, including Samsung SDI and LG Chem The revenue has just exceeded 200 billion yuan, which means that Ningde Times is equivalent to the combined revenue of the three major power battery companies in South Korea. Among the top ten power battery companies in the world, six are Chinese companies, and BYD is also The power battery market won the second place.
China's LCD panel has surpassed that of South Korea. In 2006, BOE started by acquiring a backward 3.5-generation line of Hyundai Korea. In 2009, BOE and TCL Huaxing prepared to build a global mainstream 8.5-generation line. In 2017, BOE put into production the world's most advanced 10.5-generation line. In 2018, BOE surpassed South Korea's LGD to become the world's largest LCD panel company. Subsequently, TCL CSOT also mass-produced the 11th generation LCD panel production line. Under the offensive of China's two major panel manufacturers, Samsung and LGD will completely withdraw from the LCD panel by 2022. panel market.
South Korea's mobile phone industry has also declined. Since the rise of China's four major mobile phone brands in 2014, Chinese mobile phone brands have begun to enter the international market. In particular, in the second quarter of 2020, Huawei mobile phones once surpassed Samsung to become the world's largest mobile phone brand. The well-known reason is that the mobile phone market is temporarily frustrated, but the combined market share of other Chinese mobile phone brands is twice that of Samsung, and LG has announced the closure of its mobile phone business because of the competition from Chinese mobile phones.
Chinese cars are now also surpassing Korean cars in the export market. Most of Hyundai's cars are sold in markets outside Korea. However, with the failure of Hyundai in the Chinese market, Hyundai's competitive advantage has been weakened. In the first quarter of this year, China's The export volume of automobiles reached 1.07 million, ranking first in the world, while Japan's automobile exports ranked second with 954,000. South Korea has lagged behind the automobile industries of China and Japan.
2. Korean manufacturing faces challenges from China in many industries
In the panel industry, after China's panel companies won the LCD panel market, they began to take advantage of the victory to enter the OLED panel industry. BOE has made great efforts to build four OLED panel production lines. As a result, BOE has become a direct competitor of Samsung. It is said that this year Apple Seventy percent of the OLED panels for the iPhone 15 will be supplied by BOE. LGD and Samsung have lost their competitive advantage. In addition, Visionox, TCL Huaxing, and Tianma have a combined share of 45% of the OLED panel market, which is about to tie with Korean companies.
TCL CSOT not only deploys OLED panels, but also makes efforts in more advanced miniLED and microLED panel technologies. The shipment of miniLED TVs launched by TCL has exceeded one million units, which has caused a strong impact on Samsung and LG in the high-end TV market, relying on technological advantages As well as its own LCD panel cost advantages, TCL TV shipments have surpassed LG to become the world's second largest TV company, and the gap with the number one Samsung has gradually narrowed.
Memory chips are the most outstanding chip industry in South Korea. Samsung has a 35% share of the DRAM memory chip market, and more than 40% of the NAND flash market. South Korea also has SK Hynix, the world's second largest memory chip company. The two powerhouses occupy nearly 70% of the memory chip market, but the industry is now also facing the challenge of China's memory chips.
China's memory chip companies were established in 2016, and they will be technically equal to South Korea's memory chips in 2021. The second phase of the second half of 2022 will be mass-produced, and their production capacity will triple. They have begun to launch an offensive against South Korea's memory chips. Under the fierce offensive, the price of memory chips has been halved for more than a year, and the memory chip business of Samsung and SK Hynix has suffered losses. Samsung announced a reduction in production of memory chips at the beginning of this year, which shows that Chinese memory chips are putting enormous pressure on Korean memory chips. . .
In addition, there are mobile phone chips, automotive chips and other industries, and China is trying to catch up. As Chinese manufacturing catches up in many industries or poses challenges to Korean manufacturing, the influence of Korean manufacturing is declining day by day, so that the Korean media called out Korean manufacturing. It is a great shame for manufacturing to be defeated by Made in China. Why can the once powerful Made in Korea only retreat steadily under the offensive of Made in China?