EUMSEONG, South Korea — At Chungbuk Semiconductor High School, a vocational institution dedicated to training the next generation of chipmakers, students are learning the delicate art of handling silicon wafers, the foundational components of computer chips. These students, under the guidance of teacher Kang Soo Jin, practice transferring fragile wafers using specialized equipment, underscoring the high stakes involved in semiconductor manufacturing.

South Korea’s semiconductor industry has surged to unprecedented heights, propelled by global demand driven in part by advancements in artificial intelligence. In 2025, the country exported $173 billion worth of semiconductors and is on track to nearly double that figure this year. Major players Samsung Electronics and SK Hynix now comprise more than 40 percent of the market capitalization of South Korea’s key stock index, which has more than doubled over the last year. South Korea dominates over 60 percent of the global supply of memory chips, a segment crucial to AI technologies.

This booming sector has brought attention to schools like Chungbuk Semiconductor High School, founded in 2010 as part of a government effort to cultivate a skilled workforce. Modeled after Germany’s meister system for vocational training, the school admits about 300 students and operates multiple mock fabrication facilities on campus. Admission interest has surged recently, according to principal Seo Ounsoek, reflecting widespread optimism about careers in chip manufacturing. The school boasts a postgraduate employment rate of 96.4 percent, with recruiters from Samsung and SK Hynix actively seeking top students.

Recruitment into the semiconductor industry is highly competitive. Students must rank in the top third or quarter of their class to be considered by Samsung or SK Hynix, respectively. In addition to technical skills, proficiency in a foreign language, multiple certifications, and academic rigor, including extensive reading, are required. About 20 exceptional freshmen each year receive scholarships and internships leading to full-time employment with the companies. Others undergo rigorous nationwide testing and interviews to secure positions.

The financial rewards in the industry are substantial. Samsung employees in semiconductor roles could earn bonuses exceeding $400,000 next year if profitability targets are met. This has shifted student preferences sharply away from traditional career paths such as medicine. Graduates have returned to Chungbuk sharing stories of six-figure bonuses and showing enthusiasm for the sector’s potential.

Despite the industry’s growth, some experts caution that semiconductor manufacturing remains capital-intensive rather than labor-intensive. Industry employment accounts for less than 1 percent of South Korea’s workforce. Between 2023 and 2025, although semiconductor exports rose by 75 percent, the sector added only around 1,000 jobs. Nationwide, roughly 40,000 jobs have been lost in other areas over the past year, amidst rising youth unemployment.

Both Samsung and SK Hynix are planning expansions in Yonin, near Seoul, with government backing aiming to create a major chip manufacturing hub. Samsung intends to hire 65,000 workers over five years, while SK Hynix projects up to 20,000 new jobs annually. Still, analysts warn that automation and AI-driven “autonomous” factories expected by 2030 may reduce the number of available jobs even in this growing industry.

Subcontractors supporting chipmakers, such as XT, a semiconductor equipment maintenance company, report challenges in hiring and retaining workers, and limited economic benefits from the industry’s windfall. Increased automation and advanced machinery threaten to further reduce roles in support services.

As South Korea invests heavily in its semiconductor capacity, the sector’s rapid expansion presents a complex picture—booming profits and competitive career opportunities for some, alongside concerns about the broader economy’s employment prospects and the sustainability of growth concentrated in a high-tech but not labor-intensive industry.