Japan’s tightened export control on three key semiconductor materials is not likely to disrupt Korea’s chip production as chipmakers and the Korean government have been securing substitutes.
“I understand that Korean chipmakers have found some solutions at home and abroad,” one industry source told Asia Times.
Another source added: “We cannot completely relax yet, but at the moment it is not likely that semiconductor production will be suspended or cut.”
SK Hynix announced its plan to cut DRAM production last month not because of the expected shortage of key materials but because of oversupply of DRAM.
Japan’s Ministry of Economy, Trade, and Industry tightened export regulations, requiring the Japanese chip and display material manufacturers to obtain individual approval from the Japanese government when they export to Korea fluoride polyimide, which is used in displays; etching gas, for chip cleaning and processes that cut away unnecessary parts to leave patterns of semiconductor circuits only; and photoresist used for the EUV (extreme ultraviolet) process to fabricate semiconductor substrates.
According to industry sources, fluorine polyimide is likely to be produced by local suppliers soon. Besides, Korean chipmakers already started to test locally made etching gas from last month, and expansion of a local vendor’s facility will be completed soon.
Park Young-sun, the minister for small and medium enterprises and startups, said in an interview with local radio, “Polyimide and etching gas are in a situation where you can rest now.”
Experts, however, pointed out that even if a replacement product is secured, using new materials can lead to low yields or poor quality in the early stage of production.
The photoresist on which Japan strengthened export regulations is the one for the EUV process, not for the production of DRAM. The EUV process is a technology to refine circuit width. Only Samsung Electronics and Taiwan Semiconductor Manufacturing Company are using this process to produce semiconductors that are lower than the 7-nano level. Samsung is using EUV process for foundry business that consigns logic chips.
The Japanese government has allowed the export of photoresist for EUV twice since it tightened the export control. According to industry insiders, however, Samsung Electronics has also secured the photoresist for EUV through a joint venture established in Belgium by JSR of Japan.
Amid this situation, a Korean government organization that was recently established to counter Japan’s tighter export regulations said in a press release that Korea Trade-Investment Promotion Agency found the substitutes for one of the more tightly controlled semiconductor materials in five countries. It said in-depth investigations including tests were underway.
The Japanese government dropped Korea from a “white list” of countries favored in trade following strengthened regulations on exports of semiconductor materials. About 1100 items that Korea imports from Japan appear to be subject to the tighter export control.
The Japanese measure isn’t expected to lead to a total export ban, It raises uncertainty as the range of regulation is extensive and unpredictable. It can damage South Korean industry as imports of critical parts from Japan may be delayed due to the complicated and more time-consuming import process.
A Korean government official said to Asia Times that “As far as we’ve examined 11 industries including the semiconductor sector that could be affected by the Japanese export control, there has been no damage yet. ”
Lobbying groups such as The Korea Chamber of Commerce and Industry and the Federation of Middle Market Enterprises of Korea are also investigating the cases, but no damage has been reported yet.
However, another industry source said, “Because of concerns that it may be difficult to import from now on, Korean companies try to secure inventories of parts and materials as much as possible. They are closely communicating with Japanese suppliers.”
“Naturally, they also push for multiple sourcing at home and abroad,” he added.
The Korean government announced its plan to support the securing of alternative import lines for key parts, materials, and equipment as well as the localization of them.
In an attempt to assist in securing alternative import sources, the government will operate a 24-hour customs clearance support system when importing items related to Japan’s export regulations ,with a benefit of up to 40% of tariffs cut.
The government also plans to support the expansion of production facilities by Korean companies that produce goods subject to Japan’s tighter export regulations. A budget of 270 billion won(US$224 million) will be urgently injected from the supplementary budget to support immediately needed development and test of technologies in materials, parts and equipment as well as funding facility investment.
According to the government, more than 1 trillion won will be provided to localize production of 100 key strategic items that are crucial to the supply chains of major industries, and the budget for enhancing the competitiveness of the material, parts and equipment industries will be greatly increased in next year’s budget.
Hi, this weekend is fastidious designed for me, because this time i am reading this impressive informative paragraph here at my
home.
If you wish for to get a great deal from this
article then you have to apply such techniques to your won webpage.
Please let me know if you’re looking for a article writer for
your weblog. You have some really great articles and I feel I would be a
good asset. If you ever want to take some of the load off, I’d
love to write some material for your blog in exchange for a link back to mine.
Please shoot me an email if interested. Regards!
Heya outstanding blog! Does running a blog similar to this require a massive amount work?
I’ve very little knowledge of programming however I was hoping
to start my own blog soon. Anyhow, should you have any ideas or
tips for new blog owners please share. I understand this is off
topic however I just needed to ask. Many thanks!
Cialis 20 Mg Comprime Pellicule Boete De 8 Preisvergleich Cialis Tadalafil Finasteride Buy Propecia Side Effects viagra Cialis Allemagne Viagra Professional Pfizer Acheter Cialis Par Telephone
This is a topic which is near to my heart…
Many thanks! Exactly where are your contact details though?
Amazing blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. Many thanks
Amazing blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. Many thanks
Amazing blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. Many thanks
It’s really a cool and helpful piece of info. I’m happy that you just shared this useful info with
us. Please keep us up to date like this. Thanks for sharing.
Hello, yup this article is actually fastidious and I have learned lot
of things from it regarding blogging. thanks.
Hey there! Do you know if they make any plugins to help with SEO?
I’m trying to get my blog to rank for some targeted keywords but
I’m not seeing very good gains. If you know of any please
share. Kudos!
The next time I learn a blog, I hope that it doesnt disappoint me as much as this one. I imply, I do know it was my option to learn, however I really thought youd have one thing fascinating to say. All I hear is a bunch of whining about one thing that you might fix in case you werent too busy looking for attention.
Wonderful work! This is the type of info that should be shared around the web. Shame on the search engines for not positioning this post higher! Come on over and visit my site . Thanks =)
Amazing blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. Many thanks
F*ckin’ remarkable things here. I am very satisfied to see your article. Thank you so much and i am having a look ahead to contact you. Will you kindly drop me a e-mail?
You beget a same exciting website. I like the occupied word that you equip with every article.
You can contain my website here : https://xbodybucuresti.blogspot.com/
What do you believe ?
This is a very respected post. Thanks as a service to posting this.
What do you believe nearby my website: https://crearesitebucurestii.blogspot.com/
This is a same weighty post. Thanks instead of posting this.
What do you over nearby my website: web design bucuresti
This is a very weighty post. Thanks for posting this.
What do you believe close by my website: https://crearesitedeprezentarebucurestix.blogspot.com/
Hello ! This is a very interesting advise that you made
Retain it up ! Luxury interior design London
Currently it looks like WordPress is the
top blogging platform available right now. (from what
I’ve read) Is that what you’re using on your blog?
This really answered my problem, thanks!
Hey there, You have done an incredible job. I will definitely digg it and personally suggest to my friends. I’m sure they will be benefited from this website.
Way cool! Some very valid points! I appreciate you penning
this write-up and the rest of the site is extremely good.
Nice post. I was checking constantly this blog and I’m impressed!
Very useful information specifically the last part 🙂 I care for such info much.
I was seeking this certain info for a very long time.
Thank you and good luck.
Very satisfactory article . I couldn’t to more on the poop provided.
What do you deem thither my plot ? kayseri investment property
This is a bleeding fascinating post. Hinder my purlieus CBD capsules
This is a jolly interesting post. Check my site CBD Gummies 10mg – Royal CBD