Shipments of semiconductor equipment from South Korea to China fell
Hardware

Shipments of semiconductor equipment from South Korea to China fell by half

Compared to the same period last year, South Korean microchip manufacturing equipment exports to China fell by 51.89% in the first half. Experts do not rule out that sales will continue to fall, at the initiative of China itself.

    Image source: LN/unsplash.com

Image source: LN/unsplash.com

Total semiconductor equipment exports to China in the first half were US$694.8 million, down 51.89% from the first half of 2021, according to data released Aug. 9 by the Korea Customs Service . It is noteworthy that according to Business Korea, China is the most important market for South Korean manufacturers of related equipment, accounting for 60% of South Korea’s exports of related “tools”.

First, it was sent to Samsung Electronics and SK hynix factories in China. In addition, Chinese companies such as YMTC, CXMT and SMIC are considering buying South Korean semiconductor solutions in response to US supply restrictions.

Experts attribute the drop in exports to China’s increased investment in its own semiconductor industry, which has been fueled by mounting pressure from the United States. Industry circles are suggesting that exports could fall even further due to Korea’s entry into the Chip 4 alliance, which includes states that are mostly unfriendly to China. It is understood that exports of equipment to South Korean memory chip manufacturing factories in China may be restricted by the Chinese authorities themselves, while encouraging Chinese companies to refuse to use equipment from South Korea for further development and production of devices on the territory of the country itself.

It is known that the United States has already introduced a number of restrictions on cooperation with China in the semiconductor industry, including restricting access to subsidies for those manufacturers who will develop semiconductor production in China. China itself has initiated criminal proceedings against those responsible for import substitution in the semiconductor sector – it remains to be seen how effectively the funds provided have been used.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

Add Comment

Click here to post a comment