Recently South Korea media firms reported that Japan export control over the Korean semiconductor industry might cause huge setbacks for Korean semiconductor manufacturing equipment and other semiconductor materials industry. The issue is so big that it can directly hit the Korean semiconductor business.
According to the report of Korean think tank Hana Financial Management Research Institute, the Japanese government’s next goal is semiconductor and panel production equipment. Both these two major industries in South Korea are highly dependent on Japan for their raw material.
The data demonstrates that in 2018, Japanese gear accounted for 32 percent of imported equipment employed in Korea. Whereas the screen industry accounts for 83 percent, and OLED and other businesses depends on Japan to get 100 percent of their raw material.
South Korea is among the world’s biggest semiconductor product distribution areas. It also has a deep effect on businesses such as smart phones. The Western sanctions against South Korea aren’t for economical functions, and also their movement will always have a deep effect on businesses like international semiconductors and even smart phones.