China's semiconductor industry development has a good opportunity?

14 Jul 2019

Japan’s export control of “semiconductor raw materials” initiated by South Korea still has no signs of easing, and it may continue to restructure the global China PCB show semiconductor industry supply chain.

From 0:00 on July 4, Japan launched a "first wave" attack on South Korean export restrictions. The export licensing procedures for the three high-purity hydrogen fluoride "photoresist" and "fluoropolyimide" semiconductor materials are strictly regulated. These three raw materials are “necessities” in industries such as China PCB show smartphones and chips. Yesterday, Japan’s economic industry, Shigeo Hiroshi, said at a press conference that Japan did not consider withdrawing it (sanction against South Korea). The South Korean Ministry of Industry, Trade and Resources officials said that since the export China PCB show restrictions were imposed, South Korea’s imports of these products from Japan have actually been interrupted. It is understood that the market share of three semiconductor raw materials in Japan is between 70% and 90%, and Korean stocks can only support up to four months. Soon, Korean companies will feel the serious shortage of China PCB show materials, and then the export of Korean-owned semiconductor products will also be affected, which will affect the global terminal manufacturers.

However, for the Chinese semiconductor industry, it will be good. Some insiders believe that if South Korea's China PCB show semiconductor industry supply chain is cut off, only Asia in China can quickly undertake the high-end industries in South Korea.

Japan holds the "upstream upstream"

Japan’s shot this time can be described as “snake a seven-inch snake”, which is the key to the situation. South Korea is completely “card necked” by Japan. The three raw materials that are controlled for export are “high-purity hydrogen fluoride” used on mobile phones and TV screens, “photoresist” for photosensitive China PCB show materials coated on semiconductor substrates, and “fluoroacyl” used for semiconductor cleaning. "Imines", the output of Japanese companies accounts for more than half of the world's China PCB show production. Among them, fluoropolyimide and resist account for about 90% of global production, and hydrogen fluoride accounts for about 70%.

Taking electronic grade hydrofluoric acid as an example, it is mainly used in the field of integrated circuits, and Japan is in an absolute leading position. High-purity hydrogen fluoride, electronic grade hydrofluoric acid, is a type of China PCB show fluorine fine chemical used primarily to remove oxides and is one of the most widely used electronic chemicals in semiconductor manufacturing.

At present, electronic grade China PCB show hydrofluoric acid is mainly used in the fields of integrated circuits, solar photovoltaics and liquid crystal displays. The first large application market is integrated circuits, accounting for 47.3% of the total consumption of electronic grade hydrofluoric acid; followed by solar photovoltaic field. , accounting for about 22.1%. In addition, in the field of liquid crystal displays, it accounts for about 18.3%. At present, Japan is in control of nearly 90% of the world's high-quality electronic China PCB show grade hydrofluoric acid production capacity, occupying an absolute leading position.

From the perspective of the semiconductor global industrial China PCB show chain, Japan has more than 50% of the 14 important semiconductor materials, and is the world's largest exporter of semiconductor materials. Of the top 15 semiconductor manufacturing equipment manufacturers in the world in 2018, Japan has seven, while the United States and Europe have four and three respectively.

At present, Japanese companies represented by Shin-Etsu, SUMCO, Sumitomo Bakelite, etc., have monopolized 52% of the global semiconductor materials market. The semiconductor equipment technology monopolized by Japanese companies accounts for 37% of the global semiconductor equipment market. For the semiconductor industry, materials are the foundation and equipment is the key. With the support of the “two wings” of China PCB show material advantages and equipment advantages, the Japanese semiconductor China PCB show industry has already had the potential to challenge the United States. It can be said that the development of the Japanese semiconductor industry has found a new path.

Korean companies are forced to enter a "state of emergency"

The semiconductor industry is a major China PCB show industry in South Korea. After Japan implements export controls, it will hit giants such as Samsung Electronics and LG Electronics. According to the results of the Korea Trade Fair, the dependence of high-purity China PCB show hydrogen fluoride in Korea on Japan is 93.7%, that of photoresist is 91.9%, and that of fluoropolyimide is 43.9%.

It is reported that about 60% of China PCB show electronics companies, precision machines, machinery and other electronic companies and chemical companies in Korea rely heavily on the output of Japanese technology and products, which are the basis of the current Korean semiconductor industry chain. Take Samsung's proud OLED screen as an example. Its production machine vaporizer and screen production materials are completely dependent on Japanese companies. According to market data, Japan is currently a major China PCB show producer of fluoropolyimide as a clear PI substrate for OLED screens, accounting for 90% of the world's total fluorine-containing polyimide production, while global semiconductor companies are 70% hydrogen fluoride ( It is also used in Japan for semiconductor wafer substrates. Most of the fluorine polyimides and high-purity hydrogen fluoride required by Korean companies such as Samsung, SK Hynix, and LG are imported from Japan.

Even if South Korea wants to source from other China PCB show countries, it is likely that no substitutes can be found. According to Korean media reports, as most of the restricted products are sourced from Japan, alternative sources are not easy to find, and Korean companies will be forced into a "emergency." In response to the incident, SK Hynix spokesperson told the media that the company's semiconductor material inventory was "less than three months." If the problems between the two China PCB show countries are not properly resolved and no additional purchases are possible, there may be a suspension of production in the future. In addition, Samsung Electronics, LG Display and other companies have also been affected by the new regulations on Korea. According to industry insiders, the inventory of materials generally has a quantity of 1-2 months. However, after Japan imposes export restrictions, it takes three months from the start of application to the end of the review process, which means that Samsung Electronics and LG Display will also face China PCB show production shutdown. risks of.

If Japan is doing the "machine" business used in the China PCB show production of "production supply chain products," Korean semiconductor manufacturers are more likely to use the Japanese machine to produce more downstream products. Samsung Electronics is the world's leading supplier of smart phone OLED screens, accounting for more than 90% of the market share of smart phone OLED screens, while LG Display has a China PCB show market share of over 95% on TVs and large-size OLED screens. The company’s production suspension crisis is bound to have a corresponding impact on the shipments of downstream terminal plants.

Once Korean companies cannot successfully import related products from Japan, semiconductor giants such as Samsung Electronics and SK Hynix will be immediately affected. According to a survey released by HIS, a US research company, Samsung Electronics has a 70% market share in the semiconductor memory device DRAM (dynamic random access memory) China PCB show market in 2018 and a 50% market share in flash memory devices. If DRAM and NAND cannot be shipped smoothly, terminal manufacturers of products such as computers and mobile phones in the world will naturally be affected.

China's semiconductor industry or welcomes development opportunities

“For China, this may be a good thing.” A Chinese semiconductor industry insider said, “In the first quarter of 2019, the market share of BOE OLED screens has increased, if Samsung’s OLED screen capacity is insufficient due to a disconnected event. Then, the opportunity of China PCB show BOE is coming.” Chinese panel makers have developed rapidly in recent years. BOE LCD panel shipments and shipments are the highest in the world, and OLED panels are also mass-produced, second only to Samsung. After Korean manufacturers are affected by the China PCB show embargo, it is inevitable that production will decline or supply will not be available.

Some insiders believe that if South Korea's semiconductor China PCB show industry supply chain is cut off, only Asia has the ability to quickly undertake high-end industries in South Korea.

In addition to being able to grab China PCB show food from South Korea, Chinese semiconductor material manufacturers are also expected to replace Japanese manufacturers. In terms of photoresist, China has strong new materials, Suzhou Ruihong, Beijing Kehua, Nanda Optoelectronics and Shanghai Xinyang. The China PCB show panel materials include Anji Microelectronics, Yongtai Technology, Rongda Sensing and Feikai Materials.

Of course, semiconductor is an international industry with a high degree of globalization, division of labor and cooperation. Therefore, no matter what the purpose, whether it is the United States for China or Japan for South Korea, the China PCB show embargo will not have a winner, not only will bring China PCB show losses to both sides, but will also affect the global semiconductor industry. China may be able to usher in some transfer effects, but the speculative behavior of profit-making is not a long-term solution. To seize market share, it is still necessary to improve the competitiveness of its products.

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