CSIS “China, aiming for a crack in Korea-US regulations
U.S. micron survey… Korean beneficiary” claim
Industry “Low share and limited expansion”
While China is conducting a security investigation into Micron, the largest memory semiconductor company in the United States, a US think tank claims that “China may try to cause a crack in the US semiconductor regulatory front by presenting to Korea the expansion of semiconductor sales in China as a ‘carrot’.” came out of The domestic semiconductor industry responded by saying, “The frame itself that Korean companies benefit from the US-China conflict is a burden.”
Gregory Allen, a senior researcher at the Center for Strategic and International Studies (CSIS), said in a report on the 3rd (local time), “China’s investigation of Micron Semiconductor is likely to be a diplomatic carrot to prevent South Korea from participating in US-led export restrictions.” insisted. If China retaliates against the U.S. regulations on importing advanced semiconductor equipment by withdrawing Micron, a large portion of Micron’s sales in China, which amount to 3.3 billion dollars (approximately 4.4 trillion won), could flow to Korean semiconductor companies. This means that China may have targeted Micron to prevent Korea from participating in regulations.
The Joe Biden administration is known to have requested that Korean companies refrain from expanding sales of semiconductors to China if China decides to exit Micron ahead of the Korea-US summit.
Researcher Allen also said, “Korea has reasons to be grateful for the US semiconductor equipment export control policy.” The expansion is also planned to be done on Korean soil.” It is argued that Korea could be the biggest beneficiary of export restrictions. He also pointed out that “Korea is the most important country to include in semiconductor equipment export regulations.”
However, the domestic semiconductor industry believes that even if Micron is withdrawn from the Chinese semiconductor market, the benefits to Korean companies will be limited.
First of all, Micron’s share in the memory semiconductor market in China is not high. According to market research firm Omdia, Micron had a 14.5% share of the Chinese DRAM market and a 4.6% share of the NAND flash market last year. Samsung Electronics’ market shares are 43.2% and 33.5%, respectively, and SK Hynix’s are 34.6% and 15.2%, respectively. The fact that memory semiconductor stocks accumulated by customers are not decreasing due to sluggish demand also makes it difficult for domestic semiconductor companies to expand their sales or market share right away.
An official from the semiconductor industry said, “The frame itself that Korean companies benefit from will act as a burden on companies.” ” he said.
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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.