A report on South Korea's fabless semiconductor sector reveals that 14 out of 22 major listed firms recorded operating losses in 2025. Rising R&D costs, increased EDA license fees, and higher foundry prices driven by AI demand have eroded profitability. Companies like Gaonchips, Telechips, and Zaram Technology transitioned to losses, while industry leader LX Semicon saw a 30% profit decline. The industry is facing intense competition from Chinese firms and is calling for government-backed R&D and supply chain integration.