The Korean chip industry should deal with the "ultimatum" in the United States, and the corporate community is difficult to give up the Chinese market

[Global Times special reporter Zhang Jing Global Times reporter Ni Hao] On July 21, South Korea announced an ambitious "semiconductor super power strategy". It plans to guide enterprises to complete 34 trillion won ( About 1.75 trillion yuan). However, compared to the magnificent strategic planning, the most important task of the Korean chip industry is to respond to the "ultimatum" in the United States -the United States unilaterally draws the last period of the "chip Quartet Alliance" for South Korea to join the "chip Quartet Alliance" on August 31. After the US Treasury Minister Yellen visited South Korea on the 19th, it was high -profile that the United States and South Korea deepened cooperation in "supply chain security" and were considered to be further "blowing" to South Korea. South Korea's "Asia Daily" said that Japan and Taiwan are currently very active in participating in the league, but South Korea must "think about it again." Data show that exports to China account for 60%of the overall export scale of South Korean chips. For the Korean chip industry, the Chinese market is almost impossible to give up. What kind of choice will South Korea's "ultimatum" in the United States will make everywhere.

Data map source Visual China

Sword refers to "semiconductor super power"

On the 21st, the South Korean government announced the development support plan for the semiconductor industry, focusing on cultivating talents and realizing self -sufficiency in semiconductor materials. Li Changyang, Minister of Commerce Resources of South Korea, announced the "semiconductor super power strategy" on the same day. In order to encourage relevant companies to complete 34 trillion won in semiconductor industry investment in the next 5 years, the South Korean government will provide financial support for infrastructure required for semiconductor parks. Expanding tax incentives for the investment and research and development of semiconductor equipment to increase the deduction rate of large enterprises' investment tax deductions for national strategic technology to 8%to 12%.

In terms of talent training, South Korea plans to win 150,000 semiconductor professionals in 2031. In addition, the South Korean government will focus on supporting the development of the next -generation system chips, and raised the self -sufficiency rate of semiconductor materials, parts, and equipment from the current 30%to 50%.

According to Reuters on the 21st, semiconductors have become the largest export products in South Korea for nine consecutive years, and in 2021, semiconductors account for about 1/5 of the total exports of South Korea. At present, South Korea has the world's largest storage chip manufacturers Samsung and SK Hynix.

With the deepening of the proportion of the semiconductor industry in South Korea, and the global semiconductor competition is becoming more and more intense, South Korea is even more expected to become the "leader" of the semiconductor industry. While seizing the technical highland, the independence and stability of the resources of the supply chain seeks the supply chain Essence At the end of June, Samsung Electronics announced that it took the lead in achieving a 3 -nanometer process technology to make chips worldwide. It was scheduled to ship on July 25th, one step ahead of the old opponent's TSMC.

According to a report from South Korea's "Asian Economy" on the 20th, US Finance Minister Yellen made a speech while visiting the LG Chemical R & D Park on the 19th, saying that the United States and allies should implement the "Friends Outsourcing" strategy. The strategy aims to limit the production and trade of major American commodities in the "trusted country". Yellen said in his speech that South Korea has continuously increased investment in the United States in the field of battery and semiconductor, and the United States will continue to work closely with South Korea to establish a flexible supply chain.

LG Chemistry was the only company to visit during the visit to South Korea. South Korea's "Central Daily" reported on the 20th that Yellen's visit to LG chemistry was not accidental. The LG Chemical R & D Park, which was visited, gathered a new generation of anode materials and separate battery materials research facilities. LG Chemistry is recently considering a new factory in the United States. Earlier, the company has set up factories in Ohio and other places in Ohio and other places through the production of batteries. LG intends to invest in the US $ 11 billion in the US $ 11 billion to expand the battery supply network by 2025.

Can't do without the Chinese market and raw materials

Behind South Korea's determination to comprehensively climb the global semiconductor industry, it is the reality of a significant increase in key areas in China in recent years. According to the Korean "Korean Daily" report on the 20th, data released by the South Korean Trade Association on the same day showed that after analyzing the approximately 1,200 kinds of products of the import and export product classification system, it was found that in the first half of 2022, there were 78 types of imported products in South Korea. Relying on China exceeds 80 %, which continues to increase from the 72 species in the first half of 2021. In addition, among South Korea's major imported goods, 253 species depend on China by more than 50 %.

Specifically, in terms of raw materials and components, magnesium ingots (of which 99.8%are imported from China), aluminum cable (98.9%), color steel board (97.7%), solar components (97%) Essence In addition, escalators, mouses, rice cookers and other products are more than 97%of China. The proportion of relying on China for electric trucks, dishwashers, drones and steam boilers exceeded 80%for the first time in the first half of this year. Some ingredients such as garlic, red beans, pepper, etc. almost depend on China's import.

At the same time, in South Korea's LCD display, the proportion of Chinese products increased from 52.1%last year to 78.7%, and the proportion of vacuum cleaners and drying machines also increased by about 10 percentage points. According to the report of the Korean General Association, the largest proportion of South Korea's total imports is intermediate goods (50.2%), while the biggest source of intermediate goods is China, accounting for 28.3%.

There are many types of commodities. In particular, it is worth paying attention to the battery raw materials required in the "New Energy Traffic Revolution" and the rare gases required by the chip. Several Korean giants cannot bypass China. The raw materials of a large amount of chemical products, including rare gases for semiconductors, and lithium hydroxide, nickel and manganese as battery raw materials. South Korea has a heavy dependence on China. In the first half of 2021, South Korea's "other fine chemical raw materials" imported from China accounted for 56.1%, and in the first half of 2022, it rose to 64.2%. "The decrease in daily dependence but increased the existence of China, and Korean raw materials, components, and equipment still rely on overseas supply." South Korea's "Seoul Economy" reported on the 20th that data released by the official website of the Ministry of Commerce Resources of Korea show that in the first half of 2022, in the first half of 2022 South Korea imported raw materials, components, and equipment for a total of US $ 130.67 billion, of which US $ 20.72 billion (15.4%) was imported from Japan. The influence continues to expand.

Chinese response

At a regular press conference on the Chinese Ministry of Commerce on the 21st, a spokesman Shu Tingting responded to the question of whether the US government asked South Korea to respond to the "chip Quartet Alliance" before the end of August that the stability of the industrial chain supply chain was the high degree of the current parties height Following the global issue. China believes that no matter what framework arrangements, they should be tolerant and open, rather than discriminated against him; they should promote the stability of the global industrial chain supply chain, rather than damage and split the global market. Under the current situation, strengthening the open cooperation of the industrial chain supply chain to prevent fragmentation, which is conducive to all parties and the entire world.

Shu Jingsing said that in the first half of this year, China and South Korea's bilateral trade reached US $ 184.25 billion, a year -on -year increase of 9.4%. In the context of the global economic fragile recovery, China -South Korea trade has maintained a rapid growth, which fully shows that the economy of the two countries has strong complementarity, and fully demonstrates the toughness and potential of the economic and trade cooperation between the two parties.

Lu Chao, chief researcher at the North Korean Research Center of the Liaoning Academy of Social Sciences, said in an interview with the Global Times reporter on the 21st that semiconductor is a global high -level division of labor and cooperation. None of them or even several countries can include the entire industry chain. In the global semiconductor supply chain, different regions have different advantages and depend on each other. Lu Chao believes that even the "chip square alliance" advocated by the United States can finally form a complete industrial chain. China has its own advantages in semiconductor production and semiconductor raw materials.

Kim Tae -ki, a professor of economics at South Korea ’s Tan Guo University, said that the key areas of South Korea’ s trade with China depend on too high. If a trade war between China and South Korea in the future, then South Korea ’s semiconductor and new energy batteries may face the situation of collapse.

"The United States proposes the semiconductor Quartet Alliance and the" Friends Outsourcing ', what is the strategy of South Korea's China? "South Korea's" Korean National News "published on the 20th that the United States is continuously promoting the global supply chain to reorganize with its own country, South Korea The pressure faced is also increasing. The intention of the United States to rule out the global supply chain is becoming more and more obvious. The South Korean industry's anxiety about this is obvious.

South Korea's SK President Cui Taiyuan recently stated publicly: "Whether you like it or not, China is a considerable market, so giving up is not an option." The editorial emphasized that, as an open -oriented country, South Korea must realize the maximization of national interests. It must be based on the principles of free trade and multilateralism.

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