Japan imposes sanctions on South Korea, semiconductors and OLEDs will suffer
According to the Nikkei Asia Review and Reuters, the Japanese government is preparing to impose trade sanctions on South Korea in the next few days in retaliation for South Korea’s ongoing compensation to Japan for war.
According to the report of the Nikkei Asia Review, Japan’s export restrictions on South Korea are two materials in semiconductor and chip manufacturing, as well as a material for making foldable screens - and the Nikkei Asia Review. It is also mentioned that Samsung in South Korea has an advantage in making folding screens.
The Nikkei Asia Review also said that the sanctions plan will be implemented in the next few weeks. After the Japanese suppliers provide these materials to Korean buyers, they must first apply to the Japanese government, and each item is Contracts must be applied for and approved before they can be traded. Another Japanese media said the process would take about 90 days.
Japanese media news
According to Japan’s Sankei Shimbun, the Japanese government revised its export management policy for South Korea and decided to implement the “fluorinated polyimide” used to export OLED display components to TVs and smartphones from South Korea on July 4. Three types of "photoresist" and "high-purity hydrogen fluoride" that must be used in the semiconductor manufacturing process, if this measure is implemented, may have a negative impact on the Korean economy.
The targets of sanctions include fluorinated polyimides, which are indispensable for OLED manufacturing, resistance (レジスト), which is indispensable in semiconductor manufacturing, and high-purity hydrogen fluoride (high-purity deuterated water).
Among them, fluorinated polyimide Japan accounts for 90% of world production, and high-purity hydrogen fluoride accounts for 70% of world production. (The total production volume of the world is about 9 cuts, and about 7 cuts are made by Japan.) It can be said that these two materials are basically monopolized in the world.
According to sources, Japan’s measures are actually aimed at retaliatory measures against Japan’s and South Korea’s labor compensation claims last year. According to the Yonhap News Agency, Japanese and South Korean government officials negotiated on the "World War II" labor compensation incident at the G20 summit, but the two sides did not talk about it, leading to Japan's measures to restrict exports to South Korea.
According to the Yonhap News Agency, because this is not a total ban on exports, it only strengthens the procedures. Therefore, the Korean industry will not have much loss at present, but it cannot rule out the possibility that the situation will deteriorate further with the development of Korea-Japan relations.
A South Korean industry insider said in a telephone interview with Yonhap News Agency that "the three types of export restrictions designated by the Japanese government are necessary for the production of semiconductors and display panels. South Korea relies heavily on Japan, so export restrictions bring The blow will be very big."
According to industry insiders, Japan accounts for 90% of the global production of fluoropolyimide, high-purity hydrogen fluoride gas accounts for 70% of global production capacity, and most of the fluorine polyimides required by Samsung Electronics, LG and SK in South Korea. And high purity hydrogen fluoride are imported from Japan.
South Korean experts worry that South Korea's semiconductor and display industry account for a large proportion of South Korea's GDP, so the impact of this incident on South Korea will be even greater.
In addition, from the perspective of the manufacturing industry, the entire project will be carried out because of the lack of materials. With this in mind, if Japan increases its "pressure", Korean semiconductor and display companies may suffer a huge blow.
Samsung's most important subsidiary is undoubtedly Samsung Electronics, and Samsung Electronics' most important business is undoubtedly OLED and semiconductor business.
Among them, the semiconductor business accounts for 71% of Samsung Electronics' profits, which can be said to be Samsung Electronics' cash cows. In fact, whether it is semiconductor or OLED, Samsung can only be regarded as "halfway to the home", in order to make up for the gap with advanced enterprises, Samsung is taking a "heavy product light manufacturing" strategy. Quickly seize the market through products and eliminate competitors. It is under the guidance of this strategy that Samsung defeated Japanese semiconductors to become the world hegemon through DRAM and 3DNAND and other products and the deliberate support of the United States.