[News] China’s Naura Posts 8x SEMES Profit in 1H25, Shaking Korea’s Chip Equipment Sector

According to Commercial Times, citing The Korea Economic Daily, South Korea — once a leader in semiconductor technology — is now confronting the rapid rise of China, particularly in chipmaking equipment and EDA. The report notes that China’s top equipment maker Naura recorded first-half operating profit already eight times that of Korea’s SEMES, underscoring the astonishing pace of China’s growth.

As noted by The Korea Economic Daily, Naura posted first-half revenue of 16.14 billion yuan (about 3.15 trillion won) and operating profit of 3.32 billion yuan (about 648 billion won), up 29.5% and 2.25% year-on-year. By contrast, for the same period, SEMES reported revenue of 1.11 trillion won and operating profit of 82.1 billion won, down 11.6% and 1.4%, respectively.

The report points out that Naura surpassing SEMES is hardly a new development. SEMES remained ahead only until 2021, but from 2022 onward Naura took the lead and has since grown into a major force, ranking sixth globally behind ASML, Applied Materials, Lam Research, Tokyo Electron, and KLA. Moreover, according to industry sources cited in the report, some categories of China’s front-end equipment are already considered competitive enough to be adopted in Korea.

In addition to equipment, Chinese firms are driving localization across the semiconductor supply chain, particularly in EDA (Electronic Design Automation) tools. Even Samsung Electronics has for years reportedly used solutions from Chinese firms such as Semitronix for tasks like test chip analysis and process optimization, according to The Korea Economic Daily.

China’s Chip Independence Drive Puts Korea on the Defensive

Industry sources state that under prolonged U.S. containment, China is accelerating advancements in chip technology, with its vast domestic market giving homegrown semiconductors a unique advantage. By contrast, Korea’s chip industry remains overly dependent on Samsung and SK hynix, leaving its local supply chain relatively weak, as Korea Economic Daily indicates.

Citing a report released in February by Korea’s Science and Technology Policy Institute (KISTEP), Commercial Times points out that beyond advanced packaging, China has already surpassed Korea in fundamental capabilities across various semiconductor technologies.

The Korea Economic Daily also highlights the two countries’ investment levels, underscoring China’s aggressive push for chip independence. In April this year, South Korea announced it would raise investment in semiconductor parts, materials, and equipment firms from 27 trillion won to 33 trillion won. However, this pales in comparison to China’s “Big Fund,” which has already reached 133 trillion won.

Read more

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