As the European Union (EU) has agreed on the semiconductor support bill, the future response of Samsung Electronics and SK Hynix is drawing attention.
As global semiconductor companies such as TSMC and Intel are expected to speed up their advance into the local market, the EU is expected to emerge as an axis in charge of global semiconductor production. However, the industry believes that the possibility of Korean companies entering the local market is not high.
According to the industry on the 19th, the EU announced on the 18th (local time) that the three-way consultation between the Executive Committee, the Council and the European Parliament was finalized over the semiconductor bill.
The main content of this bill is to support the establishment of semiconductor production plants, research institutes, and design facilities by investing 43 billion euros (62 trillion won) from the private and public sectors by 2030. Demand for high-tech semiconductors is rapidly increasing worldwide, but it is part of a plan to attract domestic production facilities as geopolitical risks grow.
The EU’s subsidy policy is already in effect, and world-class semiconductor companies such as TSMC and Intel are expected to set up production facilities in Europe one after another.
In particular, it is reported that intense subsidy negotiations are taking place, centering on Germany. According to foreign media, Intel, TSMC, U.S. power semiconductor company Wolfspeed, and German Infineon are currently reviewing the construction of semiconductor plants in the region.
Among them, Intel is taking active steps, such as announcing in March of last year that it would build a foundry (semiconductor consignment production) plant in Magdeburg, Germany, at an investment of 17 billion euros (24.5 trillion won). TSMC is also said to be reviewing a project to build a semiconductor plant for vehicles in Dresden, Germany.
The response from domestic companies such as Samsung and SK Hynix is lukewarm
On the other hand, in the case of Samsung Electronics and SK Hynix, despite the EU announcement, they have not made any particular statements. It shows a stark temperature difference with Intel and TSMC.
The industry believes that Samsung Electronics and SK Hynix are unlikely to advance into the local market despite subsidies.
First of all, Samsung Electronics and SK Hynix have production bases in China, the largest market for semiconductors, making them less attractive to enter the European market. In particular, major customers in Europe are automobile companies, which are somewhat different from memory, which is the main product of Korean semiconductor companies.
Moreover, since memory semiconductors are mainly general-purpose products, the importance of cooperation between customers is relatively low compared to the foundry industry. On the other hand, in the case of Europe, the industry view is that there is no reason to enter the local market because there are environmental issues such as water and electricity, and human resources structure and cost issues that do not match ours.
However, some believe that as Samsung Electronics is increasing the number of products and customers by using automotive semiconductors as future food, there is a possibility of tapping into Europe in the future.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.