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South Korea counterattacks! 6 trillion won to develop semiconductor materials

The Korea Ministry of Industry, Commerce, and Resources decided to invest 6 trillion won (about 35.29 billion yuan) in research and development of semiconductor materials, components, and equipment to cope with Japan's restrictions on exports to Korea.

The Korea Ministry of Industry, Trade and Resources said that it has further refined its investment direction in materials, parts and equipment industries based on the manufacturing revitalization strategy released last month. A feasibility study has been completed for a project of investing 1 trillion won (about 5.88 billion yuan) in research and development of semiconductor materials, components and equipment within 10 years from 2020. As for ordinary materials, parts, and equipment, the government is conducting a feasibility study on a plan to invest 5 trillion won in six years from 2021.

On the same day, Industry Minister Guan Yunmo said that the government will invest 1 trillion won a year to actively promote the multilateralization of the materials import channels needed for the pillar industries and improve the competitiveness of domestic production. The Ministry of Industry plans to propose specific plans to strengthen the competitiveness of domestic parts and components within this month.

On July 1, the Japanese government announced that it has begun export control of some Korean products, including polyimide fluorine, which is necessary for the manufacture of flexible LCD screens for TVs and smartphones, and photoresists and corrosive gases necessary for the manufacture of semiconductors. Three kinds of substances such as hydrogen fluoride concentration. It is understood that Japan's export review generally takes about three months, which will have a major impact on the production of Korean manufacturers.

If Korean companies are unable to obtain the above-mentioned three key semiconductor materials due to the export regulations imposed by Japan, the Korean semiconductor manufacturers such as Samsung can only last for 3-4 months. According to reports, Samsung, SK Hynix and other semiconductor factories have ensured that the inventory of three materials is only about one month. If the inventory of finished products such as DRAM is included in three months, the Korean semiconductor factory can last for 3-4 times. month. This move may affect the normal operation of major semiconductor companies such as Samsung, SK hynix, and Korean electronics giants.

In response, South Korea said that it will take the opportunity of Japan to accelerate the research and development of core materials, parts and equipment in the Korean semiconductor industry and improve its competitiveness. It will publish semiconductor materials and parts within this month (in July). And equipment competitiveness measures to strengthen.

However, Japan does not show weakness here, and the trade war between Japan and South Korea has gradually warmed up. According to the 2nd report of the joint communication, the Japanese government is conducting an assessment to expand the export control measures for South Korea, and plans to expand the number of items classified as controlled from the current three, and electronic parts that can be transferred to military use, Related materials may become additional objects.