The biggest loser in the "chip war", with a market capitalization of 34%.
Since August 1, China has imposed import controls on gallium and germanium, and people are watching closely to see what the consequences of such a move will be.
In fact, it is South Korea that is more worried than the United States, and some ** believe that this may affect South Korea's chip industry.
Therefore, on August 1, the Ministry of Trade and Industry of the Republic of Korea held an inspection conference on gallium and germanium ** chains, which was attended by a number of units, including the Rare Metal Research Center, the Display Research Institute, and the Semiconductor Research Institute.
The conference basically formed cooperation in the exchange of information on the supply and demand trends of the international market, the establishment of a first-chain consultation mechanism, the investigation and acquisition of mineral deposits, and the joint promotion of resource recycling and sustainable development.
It can be seen that the South Korean authorities have taken permanent measures against the export of gallium and germanium to China and are ready for a "protracted war".
In addition, according to the Korea Economic magazine, South Korea's semiconductor industry will be severely affected due to China's export controls on gallium and germanium. At the same time, the report pointed out that about 80% of the world's gallium production in China is produced in the world, and the output rate of germanium is about 60%, and gallium is mainly used in semiconductors, OLED and other industries, while germanium is an important semiconductor material.
South Korea's demand for gallium and germanium mainly comes from abroad, coupled with China's control of gallium and germanium, which has led to the ** of gallium and germanium soaring all the way around the world.
According to the information, as of July 28, the price of gallium rose to 433,000 won kilogram (2,375 won), 20% from the end of JuneThe price of germanium** has increased by more than four percent, reaching 1,220,000 won per kilogram (6,850 won).
It is clear that South Korea will have to pay more when it comes to finding gallium and germanium. Regarding this point, Cho Eun-kyo, an associate researcher at the Korea Institute of Industry, once said: South Korea is very dependent on China, especially in some high-end industries, the most critical raw materials.
As far as South Korea is concerned, the continued implementation of export controls will inevitably have a significant impact on its related technological development and promotion. Once the price of these raw materials rises, South Korea's local semiconductor companies are bound to suffer a heavy impact.
What's more, if the "chip war" between China and the United States has not been eased, China can continue to control the import of rare earths, titanium and other materials.
It can be seen that the semiconductor industry in South Korea is currently in the "cold winter", and this situation may continue to exist for a considerable period of time.
South Korean semiconductor giant Samsung Electronics has just released its second-quarter earnings report, and the company's revenue for the second quarter totaled 60 trillion won (336.4 billion yuan), down 2228%, with an operating profit of 668.5 billion won (37.5 billion600 million yuan), down 95% from the same period last year, the lowest level in 14 years.
At the same time, with the decline of the semiconductor industry, Samsung's chip division expects that in 2023, its overall loss could reach 10 trillion won due to the downturn of the entire industry. It is foreseeable that South Korea's semiconductor industry may lose a lot in this "chip war".
You must know that China used to be South Korea's largest semiconductor exporter, and large companies such as Samsung and Hynix also have a place in China, of which in 2018, South Korea's semiconductor product exports were about 41%.
However, this "chip war" has put South Korea, the world's second-largest semiconductor country, into a dilemma. South Korea's semiconductor exports to China are also declining due to various measures taken by the United States to curb China's semiconductor industry. Starting in January 2021, U.S. exports totaled 330 million, but in the first half of 2023, that number has dropped to 140 million.
Therefore, at present, South Korea's chip industry is facing a serious crisis, and South Korea's chip companies are facing a fierce game between China and the United States, and it is also an urgent issue to seek a better way to survive and develop.
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