Shulou(Shulou.com)11/24 Report--

Major South Korean semiconductor companies such as Samsung Electronics and SK Hynix lag behind global competitors TSMC in terms of labor costs and corporate taxes.

Recently, the Korea Economic Research Institute analyzed competitive factors such as the infrastructure of Samsung Electronics and TSMC. Samsung Electronics competed with TSMC in semiconductor contract manufacturing, trying to surpass TSMC in contract manufacturing, but failed to overtake TSMC. At present, TSMC is in the leading position, with a market share of 53.6%, while Samsung Electronics accounts for only 16.3%.

According to South Korean economic research, Samsung Electronics is at a disadvantage in terms of taxes, investment incentives and labor costs. The highest corporate tax rate in South Korea is 25 per cent and that in Taiwan is about 20 per cent. The South Korean government is also aware of this and is preparing a tax reform plan to reduce the top corporate tax rate to 22 per cent, but still higher than in Taiwan.

The South Korean government's support for research and development is also weak. 15% of TSMC's R & D investment is tax deductible, 40% of packaging process costs are supported by the government, and subsidies such as semiconductor talent training are available. Only 2% of Samsung's R & D investment and 1% of its equipment investment are tax deductible.

At the same time, the labor cost of Samsung Electronics is quite high. Last year, the average annual salary of Samsung Electronics employees was about 144 million won (748800 yuan), 254800 yuan higher than TSMC's 494000 yuan. Although Samsung Electronics earns a high per capita salary, it does not have enough training to provide professional manpower. About 10000 professionals in Taiwan are trained through the semiconductor sector each year, compared with 1400 in South Korea.

"reducing corporate taxes, raising tax cuts for investment in research and development and facilities, as well as supporting personnel training and deregulation are top priorities," said Kyu-seok Lee, an associate researcher at the Korea Economic Research Institute. "

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