According to the latest statistics, South Korea's chip exports increased by 12 percent year-on-year in November9%, which is the first positive growth in 15 months. This turnaround has brought hope to South Korea and also marked the importance of the Chinese market to South Korea's chip industry.
As one of the world's major chip manufacturers, South Korea's cooperation with China in the field of chips complements each other. China mainly relies on imports for mid-to-high-end chips, while South Korea's Samsung, SK hynix and other chip companies provide China with a large number of chips. In this cooperation, the price of Korean chip companies is relatively high, and they earn considerable profits every year.
However, this balance was upset by the intervention of American policy. Biden asked South Korea to join the "Quadripartite Alliance of Chips" and implemented a series of technical blockade measures, which directly affected the shipment of high-end chips. Although South Korea did not compromise, it has been severely affected, and South Korean companies have a serious backlog of chip inventories.
Under the influence of chip rules on South Korea's chip exports, the Chinese market has become a lifesaver for South Korea's chip exports. According to statistics, in 2021, China's share of South Korean chip exports accounted for 59% of the total7%, with a total amount of more than $76.8 billion. In the context of the downturn of the global chip industry, China's demand for chips has increased.
The growth in demand from the Chinese market was the main reason for the surprise in South Korea's chip exports in November**. After Biden granted permanent immunity to South Korean companies, South Korean chip production equipment in Chinese mainland began to resume operation, and the chips produced were successfully delivered to Chinese companies. At present, China's demand for chips continues to grow, while domestic self-developed chips have not yet fully met the demand, which brings opportunities for Korean chip companies.
China has always upheld an attitude of openness and cooperation, and is willing to accept global cooperation. However, if Europe, the United States, Japan, South Korea and other countries are unwilling to market chips to China, China is not without alternatives. China has strong scientific and technological strength and market demand, and is constantly increasing independent research and development and innovation of chip technology.
The opening up of the Chinese market and the growth of demand have provided huge business opportunities and development space for Korean chip companies. The importance of Korean companies to the Chinese market cannot be ignored, and in order to maintain the stability of cooperative relations, Europe, the United States, Japan and South Korea should reconsider their strategic layout of the Chinese market.
In the context of the global chip chain, the importance of the Chinese market to the Korean chip industry is undoubted. Due to the impact of technological blockades and sanctions, the export volume of South Korean chip companies has been in a state of decline for a long time. However, the growth in demand in the Chinese market has brought a turnaround for South Korean chip companies, which have achieved positive growth in chip exports in November.
The author believes that China, as one of the world's largest chip markets, is a top priority to develop an independent chip industry. Although the current domestic self-developed chips have not yet fully met the demand, China has invested a lot of resources to strengthen scientific and technological innovation and industrial upgrading. It is believed that with the passage of time, China's chip industry will make greater breakthroughs and development.
In addition, as a partner of China and South Korea, South Korean chip companies should be vigilant against Biden's technology blockade measures and strengthen cooperation with the Chinese market. The two sides can deepen cooperation on the basis of mutual benefit and win-win results, and jointly promote the innovation and progress of chip technology.
To sum up, South Korea's chip exports are the result of the growth of China's market demand. As one of the world's largest chip markets, China is of great significance to South Korean chip companies. At the same time, China's continued openness provides broad space for international cooperation. In the face of the current situation, Europe, the United States, Japan and South Korea should re-understand the importance of the Chinese market, and strengthen cooperation with China to jointly promote the development and progress of the chip industry.