Semiconductors, Batteries, and EVs: Global Industry Competitiveness Report 2025

📌 Semiconductors · Batteries · Electric Vehicles — Global Industrial Competitiveness Analysis (Part 1)

📌 Introduction — Why Look at These Three Industries Together?

In the 21st century, the driving force of the global economy is no longer limited to traditional manufacturing. In the late 20th century, industries like oil, steel, and shipbuilding symbolized a nation’s economic power and determined its rise or fall. But in the era of the Fourth Industrial Revolution, carbon neutrality, and digital transformation, a new “trinity” has emerged: semiconductors, batteries, and electric vehicles (EVs).

These three industries may seem independent, but in reality, they are tightly interconnected within a shared value chain.

Semiconductors are the brains of advanced technologies like AI, cloud, smartphones, and autonomous vehicles. In today’s data-driven world, chips provide the critical computing and storage power.

Batteries are the heart of the energy transition era. Since renewable energy like solar and wind is intermittent, large-scale storage solutions are essential. At the same time, EVs and even future electric aircraft all run on batteries.

Electric Vehicles (EVs) are the symbol of transportation’s decarbonization revolution. EVs don’t just replace internal combustion engines — they are tied to autonomous driving, smart mobility, and energy networks, reshaping urban infrastructure and national policy.

Together, these industries form a massive triangular structure: semiconductors power EVs, batteries drive them, and EV adoption accelerates demand for chips and batteries. Growth in one sector boosts the others — a synergistic cycle.

That’s why governments are pouring billions in subsidies and tax credits. U.S. policies like the CHIPS Act and IRA, the EU’s CBAM, and South Korea’s K-Battery strategy are not just industrial support programs — they’re tools of geopolitical competition. China backs BYD and CATL as national champions in EVs and batteries. The U.S. reorganizes supply chains around innovators like Nvidia and Tesla. Korea, Japan, and Europe are reinforcing their ecosystems to stay in the race.

Thus, analyzing semiconductors, batteries, and EVs is not merely writing an “industry report.” It is:

Diagnosing national competitiveness,

Tracking the flows of global capital,

Anticipating the power map of the next decade.

The following sections dive into each industry’s competition, strengths and weaknesses, corporate strategies, and actual investment trends — backed by numbers and case studies — to provide a forward-looking perspective on the global economy.

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📌 Part 1. Semiconductors — The Brain War of the AI Era

1. Korea & Taiwan — The Twin Pillars of Memory and Foundry

In the global IT race, Korea and Taiwan lead the semiconductor market with different strengths.

TSMC (Taiwan):

Over 60% foundry market share in 2024, a dominant No.1.

Commercialized 3nm process; key partner for Apple, Nvidia, Qualcomm.

Global markets react to TSMC’s production schedules, making it the “world’s semiconductor factory.”

Samsung Electronics (Korea):

Foundry market share ~15%, trailing TSMC, but world leader in memory (NAND, DRAM) with over 40% share.

Core supplier of HBM (High Bandwidth Memory) for Nvidia, alongside SK Hynix.

Starting 2nm mass production from 2025, aiming to strengthen both memory and system semiconductors.

SK Hynix (Korea):

Over 50% market share in HBM3 as of 2024.

Strategic Nvidia partner, benefiting from booming GPU demand.

Plans to mass produce HBM4 in 2025, setting standards for AI memory.

👉 Korea and Taiwan complement each other: memory dominance (Korea) plus foundry leadership (Taiwan) means together, they fuel the AI ecosystem’s “bloodstream and brain.”

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2. United States — The Empire of Design and GPUs

The U.S. holds overwhelming power in chip design and architecture, rather than sheer manufacturing.

Nvidia:

Holds 80%+ GPU market share in 2025.

Revenue projected to surge from $60B (2024) toward $100B in 2025, driven by AI servers and datacenters.

GPUs dubbed the “rice of AI,” making Nvidia one of the fastest-growing megacaps.

AMD:

Signed a $100B GPU supply deal with OpenAI (2025–2029).

Breaking Nvidia’s near-monopoly, gaining ground in AI chips.

Intel:

Announced early 2nm mass production, re-entering foundry competition.

Building mega fabs in Arizona and Ohio, backed by CHIPS Act subsidies.

Still trails TSMC and Samsung in yield stability and market trust.

👉 The U.S. may not dominate chip mass production, but by controlling design IP and GPU markets, it essentially owns the “brains” of the global supply chain.

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3. China — The Struggle for Semiconductor Independence

China leverages its massive domestic market but faces barriers to advanced chip self-sufficiency.

FDI Decline: Foreign direct investment inflows fell –8% in 2024.

Huawei/SMIC: Attempting in-house chip production, but U.S./Dutch export bans block access to sub-14nm equipment.

Tech Gap: Without ASML EUV machines, China struggles to close the gap in cutting-edge nodes.

Workarounds: Focusing on mid/low-end chips, plus partnerships with ASEAN and Middle East to diversify supply chains.

👉 Despite being the largest consumer of electronics and smartphones, China remains constrained by sanctions and structural technology limits in advanced semiconductors.

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✅ Summary

Taiwan: No.1 foundry (TSMC), leading advanced nodes.

Korea: Memory & HBM powerhouse, expanding foundry.

United States: GPU & design leader, reshoring manufacturing.

China: Huge domestic market but stuck in tech bottlenecks.

👉 The semiconductor race is not just economic. It’s about AI, defense, security, and finance. Whoever controls chips controls digital-era power.

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📌 Part 2. Batteries — The Heart of the Energy Transition

Batteries are to the 21st century what oil was to the 20th: the foundation of industrial transformation. They power renewable storage, EVs, aircraft, and ESS — making them central to national energy security and competitiveness.

1. Korea — Technology & Reliability

The Korean Big Three (LGES, Samsung SDI, SK On):

LGES: 15% global share (2024). Ultium Cells JV with GM in Ohio meets IRA rules; supplies Tesla, GM, Hyundai, Stellantis.

Samsung SDI: Focused on premium batteries; joint R&D on solid-state with BMW and VW. Pilot solid-state lines launching after 2025.

SK On: Building U.S. plants with Hyundai and Ford; highlighting fast-charging and safety.

👉 Korean firms win on energy density, safety, and cycle life, making them the preferred partners for Western automakers looking to reduce dependence on Chinese supply.

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2. China — Scale, Price, and Resource Control

CATL:

No.1 with 34% global share (2024).

Leader in LFP batteries, excelling in cost and safety.

Supplies Tesla China, BYD, Hyundai models.

BYD:

Both automaker and in-house battery maker.

Sold 3M+ EVs worldwide in 2024, surpassing Tesla.

Vertical integration slashes costs, boosting price competitiveness.

Resource Strategy: Chinese firms secure lithium/nickel mines in Africa & South America, vertically integrating from raw materials to finished EVs.

👉 China lags in tech compared to Korea/Japan, but dominates through scale, low cost, and raw-material control.

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3. Japan & U.S. — Niches and Innovation

Japan: Panasonic remains Tesla’s supplier; losing share but still leads in solid-state R&D.

U.S.: Lacks major domestic champions; instead uses IRA to pull Korean firms into local production. Tesla is also expanding battery self-sufficiency.

👉 Japan bets on next-gen innovation, while the U.S. bets on policy and reshoring.

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4. Summary

Battery competition is a value chain war — raw materials → cells → packs → vehicles.

Korea: Tech + stability → premium clients.

China: Price + resource dominance → mass scale.

Japan: Next-gen innovation → rebound attempt.

U.S.: Policy leverage → supply chain reshoring.

👉 The next decade’s winners will be those who secure cheap, stable raw materials and commercialize solid-state/next-gen tech first.

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📌 Part 3. EVs — The Stage for a Global Transportation Revolution

EVs are more than cars: they reshape energy, cities, and mobility ecosystems. Automakers, battery giants, and chip firms are all entangled in this new battlefield.

1. U.S. — Software & Charging Infrastructure

Tesla:

~1.8M EV sales in 2024 (~20% share).

Strength lies in software: OTA updates improve performance & autonomy remotely.

Supercharger network is North America’s de facto standard, adopted by GM, Ford, Hyundai.

👉 The U.S. focuses on software, platforms, and infrastructure — not just mechanical engineering.

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2. China — Market Scale & Price

BYD:

3M EV/PHEV sales in 2024, global No.1.

Domestic market ~6M vehicles/year, world’s largest.

Government subsidies, charging rollout, and local incentives underpin growth.

👉 Less about “innovation,” more about massive domestic demand and cost competitiveness. But scale itself makes China the decisive EV player.

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3. Korea — The Smart Value Player

Hyundai–Kia:

650K EV sales in 2024, global Top 3.

Based on E-GMP platform, rapidly expanding models.

U.S. Georgia EV plant starts 2025 to meet IRA requirements.

👉 Positioned as “affordable premium” EVs — practical, stylish, and quality balanced — gaining traction in Europe and the U.S.

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4. Europe — Premium Strongholds

Volkswagen, Mercedes-Benz, BMW:

Focused on luxury EVs.

Losing share to BYD’s cheap models and Hyundai/Kia’s balanced offerings.

EU carbon rules force EV adoption, but cost competitiveness is a structural risk.

👉 Europe holds the premium niche but faces margin pressure.

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📌 Part 4. Three Cross-Industry Stories

1. Supply Chains:

U.S.: CHIPS/IRA to cut China dependence.

China: Shifting production to ASEAN.

→ Supply chains are turning into geopolitical weapons.

2. Tech Race:

Semiconductors: 2nm & HBM4.

Batteries: Solid-state vs LFP.

EVs: Autonomy & software platforms.

→ Winners = those who commercialize next-gen fastest.

3. Capital Markets:

Korea: SK Hynix, Samsung SDI, Hyundai see foreign inflows.

Global: Tesla & BYD stocks swing with EV rivalry.

→ Industrial competitiveness translates directly to market flows.

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📌 Part 5. Conclusion — He Who Controls the Trinity Controls the Future

Semiconductors = Brain of AI/data.

Batteries = Heart of energy transition.

EVs = Symbol of decarbonized mobility.

👉 These are not separate industries, but one strategic triangle. National and corporate power depends on connecting and stabilizing this triangle. Over the next decade, where capital and technology concentrate in this ecosystem will decide global power shifts. For investors, now is the time to take a long-term view on semiconductor, battery, and EV players.

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📌 Sources

Ministry of Trade, Industry and Energy, 2024 Industry Trends

Bloomberg, Reuters (2024–2025)

UNCTAD World Investment Report 2024

EV Volumes, SNE Research, Korea International Trade Association (KITA)