"In the field of semiconductors, South Korea has become the biggest victim of the competition between the United States and China. "Korea Economy" said in a report on January 30South Korea's exports of semiconductor equipment and materials to China have declined sharply due to the impact of U.S. control measures on China in the semiconductor field, but Japan's exports to China in related fields have increased. Such a result made it difficult for the Korean media to hide their "unease" while reflecting.
Korean Economy" analyzed the newly released data of the Korea International ** Association and found:China's imports of semiconductors and equipment from South Korea fell by 19.2 billion from US$82.4 billion in 2018 to US$66.2 billion in 202363%。During the same period, China's imports of semiconductors and equipment from Japan increased from US$15.8 billion to US$20.8 billion, an increase of 312%。This difference is even more pronounced in semiconductor raw materials, components and equipment. China's imports from South Korea fell by 50 percent from $6.5 billion in 2018 to $3.2 billion in 20235%。China's imports from Japan increased by 8 percent from $10.6 billion to $11.4 billion over the same period46%。
South Korea has analysts who believe thatThe U.S. control measures in the field of semiconductors caught the South Korean side "off guard" and lacked the time and space to adjust the response. According to Korea Economy, the differences between Japan and South Korea are more due to the differences in product direction and market structure between the two countries. The Japanese semiconductor industry's exports to China mainly focus on market segments that are not subject to U.S. export controls, and involve semiconductor-related materials, parts, equipment, and other fields. The Japanese side has built up advantages through technological progress, creating technological barriers that are difficult to replace.
According to the report, taking automotive semiconductor technology as an example, because China has demand in related fields, and the technology related to it is not subject to U.S. export restrictions, China needs to increase the market space for imports from Japan. Renesas Electronics, the world's third-largest automotive semiconductor company, has announced plans to restart a previously closed semiconductor factory for the first time in 10 years to double production. In stark contrast, semiconductor companies such as South Korea's Samsung Electronics and SK hynix have shrunk their exports to China due to the impact of U.S. export controls and declining demand from China. Some South Korean industry insiders said that the decline in exports to China and the recession of the industry have caused a "double blow" to the above-mentioned Korean enterprises.
Some South Korean experts believe that South Korea will continue to be the "biggest victim" of the US-China competition situation. There are also some voices in South Korea that under the US export ban, China's self-sufficiency rate in the semiconductor field continues to increase, or will further squeeze the export space of South Korean companies, "If you do not upgrade technology in the cutting-edge semiconductor field and become an 'irreplaceable' party, South Korea's exports may fall into a long-term depression."
*: Global Times.