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Trade friction between Japan and South Korea,Will it cause NAND price increase and shortage?

Published :7/10/2019 1:21:39 AM

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Japan's restrictions on exports to South Korea are mainly in three categories: Fluorine Polyimide used in TV and mobile OLED panels, core material photoresist in semiconductor manufacturing, and high-purity hydrogen fluoride (Eatching Gas). This restriction will directly affect the two industries of semiconductor and panel manufacturing in Korea.

If the Korean company is "injured", South Korea will counter Japan.

According to BusinessKorea, South Korean President Wen on the 8th called on Japan to withdraw its export restrictions on Korean companies, arguing that Japan restricts trade for political purposes.

Wen Zai said that if Korean companies are subject to "actual damage" because of restrictions on trade, the South Korean government will have to take the necessary measures. He expressed the hope that the vicious circle of retaliation between the two countries will be avoided.

This is the first time that Japan has publicly expressed its views on the export of some important raw materials for the production of semiconductors and display panels to South Korea last week.

On the other hand, South Korean and Japanese government officials in charge of trade will hold talks in the near future. This is the first positive confrontation between South Korea and Japan since the implementation of restrictions. In addition, the South Korean government plans to send trade minister Liu Mingxi to the United States for international coordination.

The South Korean government explained that the two sides are currently discussing when to hold talks in Japan. The government's focus may be to correct Japan's misunderstanding. Japanese Prime Minister Shinzo Abe has mentioned that restrictions on the export of semiconductor materials to South Korea must impose sanctions on North Korea.

Korean companies are affected and they are buying raw materials

According to Reuters, in order to deal with Japan’s restrictions on the export of displays and semiconductor materials, Samsung Electronics’ vice chairman Lee Jae-soo flew to Japan on the 7th and discussed the issue with local Japanese entrepreneurs on the 8th. Fear that these restrictions may have a negative impact on Samsung Electronics' memory and display production, while Japanese companies such as Sony and Panasonic may also be affected.

According to Nikkei News, Samsung Electronics’ vice chairman Li Zaijun will ask Japanese partners to supply these materials from their production facilities outside Japan. It is reported that Samsung Electronics has purchased photoresist from Sumitomo, Shin-Etsu Chemical and JSR, purchased hydrogen fluoride from Morita and Stella, and purchased it from Sumitomo for flexibility. Polyimide for OLED panels.

According to industry insiders, Japan accounts for 90% of the global production of fluoropolyimide, and high-purity hydrogen fluoride gas accounts for 70% of global production capacity. There are no other sources available in Korea, so Samsung, SK hynix and LG are also South Korea. Most of the fluoropolyimide and high purity hydrogen fluoride required by the manufacturer are imported from Japan.

Today, Japan’s export restrictions on South Korea have come into effect, and although Samsung and SK Hynix immediately source materials from these overseas factories, it is still difficult to avoid being affected.

The export ban has caused NAND prices to be out of stock?

"This issue is basically between diplomacy and government. It is related to the legal compensation for victims of forced labor. The facilities outside Japan are also under the control of the Japanese government, which means that the situation is unlikely to improve in the near future," said a South Korea. The entrepreneur said.

Due to the huge impact of Japan's three key semiconductor materials such as embargoed photoresist on the Korean semiconductor manufacturing industry, the industry has recently spread, considering the share of the two Korean companies Samsung and SK hynix in the global memory market, NAND Flash is afraid of price increases or even out of stock. Another media reported in today's report that the memory module factory is just waiting for the NAND supply to wait for the price increase.

To this end, the international electronics business analyst discussed the matter with Yang Wende, deputy general manager of CINNO Research's semiconductor research department.

Yang Wende believes that the recent reason for the NAND price is due to the recent power outage of Toshiba and Japan's implementation of some important semiconductor raw materials for South Korea.

On the other hand, for some media reports on the price increase of Weigang's restrictions on supply, Yang Wende said that it is only limited supply at present. As for whether NAND really wants to bottom out, it is necessary to observe the actual situation of the market in the third quarter. demand.