The current trend of global protectionism is "very unfavorable".
Chey Tae-won, chairman of SK Group and chairman of the Korea Chamber of Commerce and Industry, a business lobby group, said that for South Korea, the country should find a way to expand the market size and attract foreign investment.
Chey Tae-won believes that South Korea should become a "rule-maker." From "rule-takers" to "rule-makers" by working with Japan and maintaining a balance between China and the United States
The current protectionist trend towards countries claiming to use only their own production is very unfavorable to South Korea, which has a small market but a large production volume. For example, countries are providing substantial subsidies and incentives to attract investment in key strategic industries such as semiconductors.
While acknowledging the dangers of overheated investment, South Korea** should still develop similar subsidies or incentive programs to attract foreign investment and maintain a long-term competitive advantage.
As South Korea's economy struggles under pressure from low demand and inflation, its recovery will depend on the timing of China's economic recovery. China is South Korea's largest partner and the largest demand for South Korea's chips.
From the current outlook, I believe there will be signs of recovery around the end of next year," he said. Further and an improvement in the supply-demand balance are conditions for a full recovery.
At a time when China and the United States are competing, South Korea should make decisions "rationally" and keep a cool head to maintain balance.
Few countries have adopted a strategy of choosing between China and the United States. You can see more U.S. companies visiting China and committing to invest than South Korean companies. From a business perspective, it's not like customers who don't sell products.
Regarding the optimistic prospects for the recovery of the semiconductor industry, Kim Tae-won pointed out that only a certain category of products in DRAM chips is growing, while demand in the field of NAND memory chips is still "almost dormant". For the current recovery momentum to build up, all semiconductor industries must send positive signals
Over the past few decades, the semiconductor industry has been revolving around the "ultra-microscopic level". However, the technical limitations are becoming more apparent, and ASML's extreme ultraviolet lithography machines, which are considered the key to making the most advanced chips, are skyrocketing.
While global chipmakers are eager to secure orders for ASML EUV lithography equipment (limited to 40 to 50 units per year), its high cost of ** may force companies to turn to other methods of making advanced chips.
When chipmakers start to think that the cost of buying expensive equipment is too high and the margins are slim, they may look for new ways to produce chips. ASML is also responsible for working with its partners to ensure that its products are met by demand and to improve equipment efficiency.