Illustration (CNN Indonesia / Bhishma Septalisma)

Macro Chip Export Tightened by Japan, South Korea Ready to Build Its Own Trillions Investment Factory

Estella Claudia
Market & Investment
Export Import
Jul 04, 2019
1974
Seoul, South Korea - One of South Korean legislative members stated that South Korea is currently looking and reviewing investments in the development of equipment and materials to produce micro chips that reached 1 trillion won (equivalent to 854 million dollars or IDR 12 Trillion) every year starting this year. This statement was announced after Japan restricted exports of some high-tech materials to South Korea including macro chips.

According to IHS Research Director, Markit Len Jelinek, the reduction or elimination in the availability of macro chips materials will significantly affect the production of memory and other semiconductor chips, and impacting major semiconductor manufacturers including Samsung Electronics and SK Hynix in terms of business production.

It is reported that, Japan decided to do this policy after the South Korean High Court asked Japanese company Nippon Steel to pay compensation for forced labor during World War II, making a dispute between the two neighboring countries.
However, the Japanese Industry Minister earlier said that, the decision to tighten controls did not violate the World Trade Organization (WTO), rejecting South Korea's claims beforehand.

Apparently, for local companies that produce chemicals especially used in the chip making process such as Ram Technology and Ocean Bridge this export restriction is beneficial as their shares rose 20 percent and 15 percent respectively this July 2019.

Asian exporters have been tense by a prolonged slowdown in the global electronics sector, and now Japanese trade restrictions on South Korea will add more global trading tensions as stated by the Data Company IHS Markit.

Source: https://www.cnnindonesia.com/ekonomi/20190703132534-92-408715/jepang-batasi-ekspor-korsel-bangun-industri-bahan-baku-cip

Macro , Chip , Export , South , Korea , Factory , Investment