Korean companies bearing the brunt of semiconductor equipment export controls
Posted April. 09, 2024 07:32,
Updated April. 09, 2024 07:32
Korean companies bearing the brunt of semiconductor equipment export controls.
April. 09, 2024 07:32.
.
Among countries that sell semiconductor equipment to China, Korean equipment experienced the largest export decrease last year. While American companies' exports to China decreased by 3.1% compared to the previous year, Korean companies lost one-fifth of their exports. Conversely, exports from the Netherlands and Japan actually increased significantly. The damage from the U.S.-led regulation of popular semiconductor equipment is primarily concentrated in Korea.
According to UN trade statistics, China's imports of Korean semiconductor equipment last year amounted to $4.476 billion, marking a sharp decline of 20.3% from the previous year. Conversely, imports of semiconductor equipment from the Netherlands and Japan, both key players in the semiconductor equipment industry, increased by 151% and 4.7%, respectively, over the same period.
In October 2022, the U.S. government imposed regulations on exports to China of semiconductor equipment used to manufacture DRAM with a circuit width of 18 nanometers or less, NAND flash with 128 layers or more, and system semiconductors with a circuit width of 14 nanometers or less. They also called on allies to participate in these regulations. The issue arises as Chinese companies, facing challenges in manufacturing cutting-edge semiconductors due to equipment shortages, are now focusing on producing general-purpose and older semiconductors with circuit widths of 28 nanometers or larger, and are developing related equipment. While manufactured using relatively basic technology, general-purpose semiconductors are widely utilized in electronic devices, automobiles, and defense systems. China currently accounts for approximately 30% of global semiconductor demand, with general-purpose semiconductors comprising over 70% of this demand.
Korean companies suffered significant losses because they primarily supplied general-purpose semiconductor equipment, a sector China aimed to achieve self-sufficiency in. In contrast, equipment firms in the Netherlands and Japan specializing in high-tech products, such as exposure equipment, benefited from Chinese companies rushing to procure equipment before stricter regulations were enforced. Additionally, there are suspicions that certain U.S. equipment companies, spearheading these regulations, may be circumventing government oversight by selling high-tech equipment subject to export bans directly to China.
Recently, the United States and the European Union (EU), deeming Chinese regulations inadequate, are taking steps to entirely halt overseas exports of Chinese general-purpose semiconductors. This poses a significant challenge, particularly for Korean equipment companies that are already facing difficulties. Korea, reliant on American source technology and Dutch equipment to sustain competitiveness in the memory semiconductor sector, finds it challenging to evade regulations influenced by Western nations targeting China. Nevertheless, the government must assertively advocate for fair treatment through negotiations with relevant countries, ensuring that Korean companies are not unfairly disadvantaged.
韓國語
Among countries that sell semiconductor equipment to China, Korean equipment experienced the largest export decrease last year. While American companies' exports to China decreased by 3.1% compared to the previous year, Korean companies lost one-fifth of their exports. Conversely, exports from the Netherlands and Japan actually increased significantly. The damage from the U.S.-led regulation of popular semiconductor equipment is primarily concentrated in Korea.
According to UN trade statistics, China's imports of Korean semiconductor equipment last year amounted to $4.476 billion, marking a sharp decline of 20.3% from the previous year. Conversely, imports of semiconductor equipment from the Netherlands and Japan, both key players in the semiconductor equipment industry, increased by 151% and 4.7%, respectively, over the same period.
In October 2022, the U.S. government imposed regulations on exports to China of semiconductor equipment used to manufacture DRAM with a circuit width of 18 nanometers or less, NAND flash with 128 layers or more, and system semiconductors with a circuit width of 14 nanometers or less. They also called on allies to participate in these regulations. The issue arises as Chinese companies, facing challenges in manufacturing cutting-edge semiconductors due to equipment shortages, are now focusing on producing general-purpose and older semiconductors with circuit widths of 28 nanometers or larger, and are developing related equipment. While manufactured using relatively basic technology, general-purpose semiconductors are widely utilized in electronic devices, automobiles, and defense systems. China currently accounts for approximately 30% of global semiconductor demand, with general-purpose semiconductors comprising over 70% of this demand.
Korean companies suffered significant losses because they primarily supplied general-purpose semiconductor equipment, a sector China aimed to achieve self-sufficiency in. In contrast, equipment firms in the Netherlands and Japan specializing in high-tech products, such as exposure equipment, benefited from Chinese companies rushing to procure equipment before stricter regulations were enforced. Additionally, there are suspicions that certain U.S. equipment companies, spearheading these regulations, may be circumventing government oversight by selling high-tech equipment subject to export bans directly to China.
Recently, the United States and the European Union (EU), deeming Chinese regulations inadequate, are taking steps to entirely halt overseas exports of Chinese general-purpose semiconductors. This poses a significant challenge, particularly for Korean equipment companies that are already facing difficulties. Korea, reliant on American source technology and Dutch equipment to sustain competitiveness in the memory semiconductor sector, finds it challenging to evade regulations influenced by Western nations targeting China. Nevertheless, the government must assertively advocate for fair treatment through negotiations with relevant countries, ensuring that Korean companies are not unfairly disadvantaged.
Most Viewed
