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  • POSCO Labor Union Extends Negotiation Period for Collective Bargaining
    POSCO Labor Union Extends Negotiation Period for Collective Bargaining The POSCO Labor Union has agreed to extend the negotiation period following a recommendation from the Central Labor Relations Commission, allowing for continued dialogue with management. However, this extension is intended to give the company time to present a responsible final proposal. If there is no progress in the final adjustment meeting, the union plans to initiate legal dispute procedures.On August 5, the Korea Metal Workers' Union, representing the POSCO Labor Union, announced that during the second adjustment meeting for the 2026 collective bargaining held at the Central Labor Relations Commission, they decided to extend the negotiation period based on the commission's recommendation. Consequently, both parties will engage in focused negotiations during the extended period, culminating in a final adjustment meeting scheduled for August 18 at 2 PM.If a decision to halt negotiations is made at that time, the POSCO union will secure the right to strike.Kim Sung-ho, chairman of the POSCO union, stated, "The company must present a responsible final proposal befitting the nation's top steelmaker. We will fulfill our responsibility for dialogue until the end, but if the decisions of our members are ignored again, we will take action according to legal procedures."Meanwhile, both parties continue to have differing views regarding compensation levels in this year's wage negotiations. The union is demanding substantial improvements in treatment and compensation commensurate with performance, while the company argues that it must consider the downturn in the global steel market and declining profitability.* This article has been translated by AI. 2026-08-05 18:08:10
  • Samsung and SK Hynix Diverge in Next-Gen Memory Strategies
    Samsung and SK Hynix Diverge in Next-Gen Memory Strategies Samsung Electronics and SK Hynix are charting different paths in the next-generation memory market following high bandwidth memory (HBM). Samsung is pursuing a 'custom-tailored' strategy by directly stacking memory on customer artificial intelligence (AI) chips, while SK Hynix is focusing on establishing a 'shared standard' that multiple customers can utilize.On August 5, the semiconductor industry reported that both companies unveiled their next-generation AI memory technologies at the 'FMS 2026' event in Santa Clara, California. Their technological directions for capturing market leadership post-HBM have become distinctly different.Samsung's leading technology is zHBM. Unlike traditional HBM, which is placed beside AI accelerators, zHBM stacks memory vertically on top of the AI accelerator. This reduces the distance between the processor and memory, increasing data transfer speeds and reducing power consumption.Samsung claims that zHBM can deliver up to eight times the performance of HBM5. It also boasts a power-to-performance ratio that is three times higher and can reduce thermal resistance by more than half. As AI models grow larger, data transfer bottlenecks become more pronounced, and Samsung's solution is to bring memory closer to the processor.Custom design is also a key aspect. Samsung explained that it can incorporate customer-specific intellectual property (IP) into the interlayer between the memory and AI accelerator. This means the structure can be adjusted to meet the desired memory capacity, accelerator performance, and power conditions of the customer.In NAND technology, Samsung emphasized its 3D strategy, unveiling the 10th generation V-NAND, known as V10 BV-NAND, which has over 400 layers. By applying wafer bonding technology, it has increased density by approximately 58% compared to the previous generation. The company also introduced zNAND-O for on-device AI.In contrast, SK Hynix is focusing on standardization. Together with SanDisk, it unveiled the first standard specification for high bandwidth flash (HBF). HBF is a next-generation storage technology that, like HBM, allows for rapid data transfer while increasing capacity based on NAND.HBF serves as a new layer between HBM and solid-state drives (SSDs). As AI inference becomes more widespread, data will accumulate more frequently. Relying solely on HBM would create capacity burdens, while SSDs alone would lack speed. SK Hynix aims to fill this gap with HBF.The new specification is based on a maximum capacity of 512GB, with bandwidth divided into three tiers ranging from approximately 0.4TB to 3.0TB per second. It adopts the open chiplet interface UCIe for connections with processors, allowing for compatibility with various chips, including GPUs and CPUs.SK Hynix also introduced its 10th generation 375-layer 4D NAND at FMS, which offers 2.5 times the power-to-performance ratio compared to the previous generation. The company plans to begin mass production of high-performance, high-capacity eSSDs based on this technology early next year.A semiconductor industry insider noted, 'The post-HBM competition is a battle over who can dominate the AI system architecture rather than just product specifications. Samsung targets optimization for individual customers, while SK Hynix aims for an open ecosystem to address AI memory bottlenecks.' 2026-08-05 18:04:20
  • Samsung and SK Hynix Secure Renewable Energy Supply for Yongin Fab
    Samsung and SK Hynix Secure Renewable Energy Supply for Yongin Fab Samsung Electronics and SK Hynix have made progress in securing a 'carbon-neutral power grid,' which has been a significant hurdle in the global AI chip procurement race. With major tech companies pushing for RE100 (100% renewable energy usage), the government is moving towards national legislation, alleviating uncertainties surrounding renewable energy procurement for the Yongin semiconductor cluster.According to the government and industry sources on August 5, the Yongin semiconductor cluster, a key production base for Samsung and SK Hynix, is expected to benefit indirectly from the establishment of the 'RE100 Industrial Complex Special Law' aimed for this year. This law will elevate the energy self-sufficiency principle, allowing the Yongin fab to significantly increase its access to green power from external sources as the area is developed into a large-scale renewable energy supply hub.The Ministry of Trade, Industry and Energy announced plans for the new RE100 Industrial Complex Special Law during its second-half work report. The proposal includes designating regions with enhanced renewable energy self-sufficiency, such as the southwestern area, as 'RE100 special zones' to foster a renewable energy ecosystem and connect it to the national power grid. The plan aims to significantly ease regulations on direct power purchase agreements (PPAs) while expanding transmission infrastructure to create a nationwide eco-friendly power supply system.Previously, the Yongin semiconductor cluster faced challenges in securing renewable energy due to difficulties in land acquisition in the metropolitan area, a lack of transmission networks to bring in power from regions like Honam, and excessive PPA fees.With the special law, discussions on revising the cost structure for network usage fees and additional costs related to direct power purchase agreements (PPAs) are expected to gain momentum, allowing the Yongin fab to benefit from reduced power procurement costs. Notably, if the construction of the West Coast High Voltage Direct Current (HVDC) transmission network is expedited in conjunction with the RE100 special zone designation, it could accelerate the flow of large-scale offshore wind and solar power, previously constrained by transmission capacity issues, into the Yongin semiconductor lines with minimal power loss.Samsung and SK Hynix are closely monitoring the detailed implementation plans of this policy. There is a growing concern that even if they produce world-class semiconductors through next-generation high-bandwidth memory (HBM) or advanced process nodes, they could lose supply opportunities if they fail to meet carbon neutrality requirements. For instance, Apple has mandated carbon neutrality across its entire supply chain by 2030, while Microsoft and Google have set similar expectations for their partners to achieve 100% carbon-free and renewable energy usage by around 2030.Global competitors have already secured large-scale long-term power purchase agreements (PPAs) or rapidly increased their share of green power procurement, particularly in overseas operations. TSMC has signed a 20-year long-term PPA with Denmark's Ørsted to exclusively receive 920 megawatts (MW) of offshore wind power, demonstrating aggressive moves to secure green energy. Micron is also pursuing large-scale long-term PPAs to achieve RE100 in its U.S. operations and has been signing long-term green power purchase agreements in Taiwan and Southeast Asia.As uncertainties surrounding renewable energy procurement for the Yongin fab diminish, industry attention is focused on the potential impact on K-semiconductors' global carbon neutrality efforts.An industry insider stated, "If the RE100 special zone is established, the connection between the power grid and transmission infrastructure will be smoother, allowing not only designated cities but also national strategic industrial complexes like Yongin to somewhat mitigate energy risks. This will provide a foundation for meeting the carbon neutrality guidelines of global clients."* This article has been translated by AI. 2026-08-05 18:04:20
  • Impact of Falling Exchange Rates on Industries: Airlines and Batteries Benefit, Auto Sector Struggles
    Impact of Falling Exchange Rates on Industries: Airlines and Batteries Benefit, Auto Sector Struggles As exchange rates and international oil prices have recently declined, the industrial sector is experiencing mixed reactions. While the aviation, battery, and steel industries anticipate reduced operational costs and raw material expenses, the export-dependent automotive sector is concerned about declining profitability due to the diminishing effects of the exchange rate.According to industry sources, airlines are smiling for the first time in a while. With jet fuel prices, which account for about 30% of airline operating costs, stabilizing and the won-dollar exchange rate falling, operational burdens are expected to ease significantly.Airlines primarily settle major costs such as fuel, aircraft leasing, and maintenance in dollars, so a lower exchange rate enhances cost-saving effects. Additionally, as the exchange rate drops, the purchasing power of domestic travelers going abroad increases, raising expectations for improved passenger load factors.An airline official stated, "We faced a challenging period in May and June, to the point of entering emergency management, but the business environment has noticeably improved recently. We plan to enhance profitability by launching various promotions to match peak season demand."According to the Ministry of Land, Infrastructure and Transport, the average price of Singapore jet fuel (MOPS) used to calculate international fuel surcharges for August was $119.06 per barrel from June 16 to July 15, a decrease of $23.30 from the previous month. Consequently, the applicable stages for international fuel surcharges dropped to 14 stages, down from 33 stages in May. The exchange rate, which soared to the 1,560 won range in June, has now fallen to 1,424.50 won.The battery and steel industries are also welcoming the stabilization of the exchange rate. Given that they import most of their key raw materials in dollars, a lower exchange rate can lead to cost reductions. With the majority of raw materials imported, a stronger won is expected to further alleviate procurement burdens for the battery and steel sectors.According to the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIS), the price of lithium carbonate as of the fifth week of July was $20,772 per ton, down 0.9% from the previous week. Iron ore prices also stabilized at $97.07, a 1.7% decrease from the previous week. With the strengthening of the won, the procurement burdens for the battery and steel industries are likely to ease further.In contrast, the domestic automotive industry, which is highly reliant on exports, is facing profitability challenges due to the declining exchange rate. Automakers typically receive most of their overseas sales revenue in dollars, so when the value of the won rises, the conversion of dollar sales into won results in decreased revenue and operating profit.As the U.S. automotive tariff burden and global competition continue to intensify this year, a further weakening of the exchange rate's favorable effects could complicate profitability defense. Indeed, Hyundai Motor and Kia reported second-quarter operating profits of 2.85 trillion won and 2.63 trillion won, respectively, down 20.8% and 4.9% from the same period last year.An automotive industry official noted, "As automakers have a high export ratio, a rising won tends to lower profitability during the conversion of overseas sales revenue into won. However, the current exchange rate is within the expected range reflected in this year's business plan, so we believe we can defend profitability through product mix improvements and cost efficiencies." 2026-08-05 18:04:10
  • Samsung Electro-Mechanics Doubles Q2 Capital Investment Amid AI Demand
    Samsung Electro-Mechanics Doubles Q2 Capital Investment Amid AI Demand Samsung Electro-Mechanics is accelerating its production capacity for multilayer ceramic capacitors (MLCC) in response to increased investment in artificial intelligence (AI) infrastructure. The company is aggressively expanding its capital expenditure (CAPEX) due to a surge in demand for high-value MLCCs used in AI servers and data centers.According to Samsung Electro-Mechanics' financial performance report released on August 5, the company's capital investment for the second quarter reached 606.6 billion won, a 122.2% increase from 273.0 billion won during the same period last year. This figure also more than doubled compared to the first quarter's 263.3 billion won, marking the largest quarterly investment to date.This investment expansion is seen as a proactive measure to meet the rapidly growing demand for MLCCs, particularly for AI servers and data centers. MLCCs are essential passive components that stabilize current supply and eliminate unnecessary electrical signals (noise) in nearly all electronic devices, from smartphones to automobiles and servers. AI servers, in particular, require a significantly higher number of high-capacity and high-voltage MLCCs, making them a key beneficiary of the expanding AI infrastructure.The company is also broadening its revenue base by securing multiple long-term supply agreements (LTA). It has signed long-term contracts with over 10 clients, including global hyperscalers, and is in discussions for additional agreements. These long-term contracts often involve advance payments or guaranteed volumes, providing a foundation for proactive expansion of production facilities.Based on this, Samsung Electro-Mechanics is accelerating the expansion of its domestic and international production bases. Investments are underway to increase production capacity at key locations, including its Sejong facility, as well as in Vietnam and the Philippines. Recently, the company has expedited the operational timeline for its new MLCC factory in the Philippines to prepare for the supply of ultra-high-capacity MLCCs for AI accelerators.The company is also increasing its investment in package substrates. In line with the growing supply of flip-chip ball grid array (FC-BGA) for AI accelerators, it is enhancing production capacity both domestically and internationally while simultaneously developing next-generation packaging and high-spec substrate technologies. Previously, the company announced an 8 trillion won investment to establish a new semiconductor package substrate production line for AI servers at its Sejong facility.With recent price increases contributing to growth, the company anticipates a strong performance in the second half of the year. As the supply shortage of high-value MLCCs for AI infrastructure intensifies, it has raised prices for some MLCC products by up to 30% starting this month. The simultaneous increase in the proportion of AI server products and average selling prices (ASP) is expected to enhance profitability. The company has indicated that it expects to achieve record performance in the third quarter due to the anticipated worsening supply shortages of MLCCs and FC-BGAs.* This article has been translated by AI. 2026-08-05 18:04:10
  • Samsung Faces Mixed Impact from Currency Fluctuations Amid Semiconductor Demand
    Samsung Faces Mixed Impact from Currency Fluctuations Amid Semiconductor Demand Samsung Electronics is experiencing varied financial impacts across its business divisions due to the recent decline in the won-dollar exchange rate. While demand and price increases for memory used in artificial intelligence (AI) servers are offsetting currency losses in the semiconductor sector, the mobile and TV & home appliance divisions are facing potential revenue declines.As of recent reports, the won-dollar exchange rate is trading between 1,420 and 1,430 won. Although the easing of high exchange rate pressures has raised expectations for reduced costs across the industry, Samsung anticipates differing effects on its various business segments.In the semiconductor division, the drop in exchange rates is not entirely welcome, as it reduces the won-denominated profits from dollar sales. A Samsung representative noted, "In the first quarter, the rise in major currency exchange rates, including the dollar, had a positive effect on overall operating profit." However, the more direct influence on semiconductor performance comes from market conditions rather than exchange rates. In the second quarter, Samsung's semiconductor division reported an operating profit of 89.2 trillion won, driven by strong demand for server DRAM and enterprise SSDs due to increased investment in AI data centers, along with a rise in shipments of high-value products like high-bandwidth memory (HBM).Looking ahead to the second half of the year, forecasts suggest that demand and pricing in the semiconductor sector will largely offset the burdens of currency fluctuations. KB Securities predicts that memory prices will rise by at least 30% in the third quarter, with long-term supply contracts from AI server clients helping to stabilize prices.In contrast, the mobile division is struggling. Samsung's mobile business reported an operating loss of 700 billion won in the second quarter, largely due to soaring memory prices increasing smartphone production costs. While the decline in exchange rates may lower some import component costs, it also reduces the won-denominated value of overseas sales.The TV and home appliance sectors are similarly feeling the strain. Rising costs for panels, memory, logistics, and tariffs complicate profitability, and the drop in the won-dollar exchange rate poses an additional threat to revenue. Even though a stronger won may lower raw material and some component procurement costs, it does not alleviate the challenges of slowing sales and promotional expenses.Concerns about revenue contraction in the finished products (DX) division are expected to persist in the second half of the year due to the exchange rate decline. Improving the product mix is seen as crucial. The mobile division needs to expand sales of flagship and foldable models, while the TV and home appliance sectors must increase the share of premium products and AI-integrated appliances to improve performance.Kim Dong-won, head of research at KB Securities, recently stated in a report, "The memory supply shortage is expected to worsen until 2028," and projected that memory prices will rise by at least 30% in the third quarter.* This article has been translated by AI. 2026-08-05 18:04:10
  • Korean Won Strengthens Against Dollar, Impacting Exporters
    Korean Won Strengthens Against Dollar, Impacting Exporters The won-dollar exchange rate, which fluctuated in the mid-1500s, has recently dropped nearly 7% over the past month. While sectors heavily reliant on energy and raw material imports are expected to benefit, export companies in industries such as automotive and electronics may see a decline in profitability due to reduced exchange gains during the conversion process. Concerns have been raised about the increased uncertainty in management caused by rapid exchange rate volatility.On August 5, the won-dollar exchange rate closed at 1,424.50 won, down 8.0 won from the previous trading day. This marks a decrease of 111.5 won (7.3%) compared to the closing rate of 1,539.70 won on July 6. After reaching a peak of 1,561.50 won on June 5, the exchange rate has fallen to the mid-1430s earlier this month, following government measures to stabilize the foreign exchange market, demand for currency exchange related to SK Hynix's American Depositary Receipts (ADRs), and coordinated monetary policies between the U.S. and Japan.As the upward trend in the exchange rate has subsided, industries that were struggling with high rates and declining performance are experiencing relief. A stronger won against the dollar means that companies in sectors such as aviation, batteries, steel, and petrochemicals, which pay for crude oil imports in dollars, will see a reduction in fixed costs and improved profitability. Airlines, which have faced significant losses due to rising foreign currency debt from costs like aircraft leasing, jet fuel, overseas maintenance, and parts purchased in dollars, are particularly hopeful. The travel and duty-free sectors are also anticipating a recovery in demand due to the stronger won.Conversely, companies with a high export ratio are expected to see a decline in anticipated profits. Export sectors such as semiconductors, automobiles, shipbuilding, and defense receive payments in dollars, meaning that higher exchange rates lead to increased sales and operating profits. Analysts estimate that for every 10 won movement in the won-dollar exchange rate, Samsung Electronics and SK Hynix's annual operating profits fluctuate by approximately 300 billion won and 100 billion won, respectively. Hyundai Motor and Kia also project a decrease in operating profits by 200 billion to 300 billion won for every 10 won drop in the exchange rate.Given the increased volatility in exchange rates, companies are preparing for long-term impacts. An industry insider stated, "The rapid fluctuations in exchange rates are becoming a burden on business operations. We are prioritizing the allocation of earned foreign currency to dollar-denominated expenses, aligning the scale of assets and liabilities by currency, and utilizing various derivatives to manage exchange rate risks effectively."* This article has been translated by AI. 2026-08-05 18:04:10
  • Renault Korea Offers 60-Day Return Guarantee for New SUV Purchases
    Renault Korea Offers '60-Day Return Guarantee' for New SUV Purchases As high inflation persists, consumers are applying stricter standards to car purchases, emphasizing 'value consumption.' Renault Korea is responding by offering a new purchasing experience that has garnered positive feedback.According to industry sources, Renault Korea has launched a '60-Day Return Guarantee Program' for its mid-size SUV, the Grand Koleos. Customers can test drive the vehicle for 30 to 60 days, and if they are not satisfied, they can return it under certain conditions. This program allows customers to fully experience aspects such as ride comfort, noise levels, fuel efficiency, and space utilization that are difficult to assess during a short test drive.Renault Korea has also reduced the initial purchase burden. The company is offering a '3-Zero (ZERO) Installment Plan' for customers purchasing the Grand Koleos and the Philanth. Under this plan, there are no payments for the first three months, followed by a repayment period of up to 60 months.The program's feasibility is supported by the proven marketability of the Grand Koleos. Since its launch in September 2024, a total of 71,430 units have been sold as of June, and it has received high praise, winning three 'SUV of the Year' awards at major domestic automotive ceremonies. The hybrid E-Tech model can operate on electric power for up to 75% of urban driving, achieving a class-leading certified combined fuel efficiency of 15.7 km/L.Renault Korea is also focused on maintaining customer satisfaction after purchase. Recently, the company enhanced the air conditioning system, user interface, and infotainment features through its fifth FOTA (Firmware Over-The-Air) update. Additionally, it offers a 'Car Experience' test drive service, allowing customers to experience the vehicle at their preferred location.A Renault Korea representative stated, "Since a car is a consumer good that one lives with for a long time, we designed this program to provide peace of mind. We will continue to lower various purchasing burdens while enhancing the vehicle's competitiveness."* This article has been translated by AI. 2026-08-05 18:04:10
  • K-Bio Needs Ecosystem Improvement Amid Chinas Rise in Biopharma
    K-Bio Needs Ecosystem Improvement Amid China's Rise in Biopharma South Korea's pharmaceutical and biopharmaceutical industries are recognized for their technological capabilities, but the underlying industrial infrastructure remains a challenge. As China leverages its capital, clinical trial capabilities, and commercialization strengths to penetrate the global market, analysts suggest that South Korea must improve its overall ecosystem.According to the Korea Bio Association's Bio Economy Research Center, as of this year, South Korea has 3,259 new drug pipelines, ranking third globally after the United States (11,662) and China (7,141). The number of R&D-focused bio ventures is also among the highest in the OECD.Industry experts note that technological prowess and industrial competitiveness are separate issues. While China has built an ecosystem that connects clinical trials, production, and commercialization through a vast domestic market, government support, and substantial capital, South Korea's individual technologies are world-class, but the links needed to develop these into global blockbuster drugs are weak.In particular, there is a lack of platforms for bio-focused venture capital (VC), contract research and development manufacturing organizations (CRDMO), and mergers and acquisitions (M&A). Jeong Yoon-taek, head of the Pharmaceutical Industry Strategy Research Institute, stated, "Establishing strategic partnerships that can respond to global clinical and regulatory challenges and enhancing the overall ecosystem's capacity is an urgent task."China was not always an innovation powerhouse in pharmaceuticals. In 2015, over 95% of approved drugs were generics, but continuous investment and expansion of industrial infrastructure have transformed its landscape. A notable example is Hansoh Pharmaceutical, which, after going public in 2000, invested in R&D for 14 years before obtaining approval for its self-developed drug. The proportion of R&D investment increased from about 5% of revenue to as much as 30%. It later succeeded in commercializing the late-stage gastric cancer treatment 'Apatinib' and the immuno-oncology drug 'Camrelizumab.'This transformation was not solely due to individual company investments. In the early 2000s, the Chinese government implemented policies to support experts in the scientific field, leading to the return of Chinese scientists working abroad and the growth of the contract research organization (CRO) market. The combination of CROs with global clinical experience, VC, and government support has fostered an ecosystem that connects technology development to commercialization.According to GlobalData, cited by the American Pharmaceutical Association, Phase 1 clinical trials in China are, on average, seven months faster and 30-50% cheaper than in the U.S. In January of this year, China surpassed the U.S. and Europe in the number of global drug approvals, and the number of new drug developments entering clinical trials in 2024 is also expected to exceed that of the U.S.The government is focusing on building an innovation ecosystem that connects 'core technology - technology startups - investment - technology exports - new drug development.' The industry believes that establishing a structure that connects technological capabilities to the global market will determine competitiveness.Hwang Joo-ri, head of external cooperation at the Korea Bio Association, remarked, "Korean bio has already passed the stage of doubting its technological capabilities. We need to create a structure that allows talent, capital, and commercialization know-how with global market experience to flow into and accumulate within the domestic ecosystem."* This article has been translated by AI. 2026-08-05 18:00:10
  • Chinas Biotech Industry Challenges U.S. Dominance in Global Drug Market
    China's Biotech Industry Challenges U.S. Dominance in Global Drug Market China's biotechnology industry is emerging as a key player that is shaking up the U.S.-centric global drug market. Amid U.S.-China competition and the pandemic, the strategic value of the pharmaceutical and biotech sectors has increased, with China rapidly establishing its presence in innovative drugs and advanced biotechnologies, supported by a vast domestic market and government backing.According to market research firm Grand View Research, the size of China's biotechnology market is expected to expand from approximately $74.2 billion in 2023 to $263 billion by 2030, more than tripling in size.China's pharmaceutical and biotech industry ranks second globally in terms of revenue, following the United States. The Korea Pharmaceutical and Bio-Pharma Manufacturers Association reported that China's pharmaceutical and biotech revenue is projected to reach approximately 2.9763 trillion yuan (about $635 billion) by 2024. The report noted that China is rapidly building an industrial ecosystem that integrates production, research and development (R&D), clinical trials, and technology commercialization, positioning itself as a central player in the global pharmaceutical competition.A notable shift in the industry structure is occurring, moving from a focus on generic drugs to innovative drugs and biotechnologies in recent years. While generics still account for about 50% of the Chinese pharmaceutical market as of 2024, their share has been declining over the past five years. In contrast, innovative drugs are leading market expansion with an impressive average annual growth rate of 8.53%. This indicates a transition from being a low-cost generic drug supplier to a market that simultaneously produces innovative technologies and drug candidates.Recently, global pharmaceutical companies have been signing large technology transfer and co-development agreements with Chinese biotech firms. This shift demonstrates that China is no longer just a manufacturing hub but is recognized as a source of innovative drugs and a co-development partner. Chinese companies are particularly gaining traction in the fields of antibody-drug conjugates (ADC) and AI drug development.In the contract development and manufacturing organization (CDMO) sector, competitiveness is also on the rise. WuXi Biologics is a leading example, reporting a 16.7% increase in revenue to 21.8 billion yuan (approximately $4.65 billion) last year compared to 2024. The number of new projects is also on the rise, with 209 new projects secured last year, a 41% increase from 148 in 2024. By the end of last year, the total number of projects held reached 945, with half of the new projects originating from the U.S., indicating continued global market engagement.Market analysts believe that China's large domestic market, relatively abundant workforce, processing capabilities, and rapid facility expansion are combining to evolve the country into an integrated biotech hub capable of conducting both R&D and production. The trend of selecting China as a clinical trial partner is also increasing, driven by lower costs and faster trial speeds compared to the U.S. According to the Korea Bio Association, the National Medical Products Administration (NMPA) of China reported a record high of 5,215 clinical trials conducted in the country last year, a 6.4% increase from the previous year.This trend is also prompting changes in the domestic pharmaceutical and biotech sectors. Collaborations with China are evolving beyond simple market entry to sharing responsibilities for candidate substance discovery, early clinical trials, and global commercialization.Samsung Biologics has opened its first overseas R&D center in Beijing to enhance its capabilities in ADC-focused drug development. LG Chem has structured a partnership with a Chinese biotech firm to jointly discover cancer drug candidates, conducting preclinical and early clinical trials locally while managing later development and commercialization directly. Aribio is collaborating with Puxing Pharmaceutical to advance the clinical phase III trials and commercialization of its dementia treatment, AR1001, in China.Yoon Hee-jung, head of the Bio Innovation Strategy Team at the Korea Institute of Science and Technology Evaluation and Planning (KISTEP), stated, "Chinese companies are emerging as key partners in co-development in advanced fields such as bispecific antibodies, ADCs, and CAR-T (chimeric antigen receptor T-cell) therapies." She added, "There is a need to collaborate by combining China's assets, clinical capabilities, and market access with our country's platform, manufacturing, and quality capabilities."* This article has been translated by AI. 2026-08-05 18:00:10