Japan lifts restrictions on export of semiconductor materials to South Korea

The supply stability of key materials has been a key issue in the Korean semiconductor industry. However, in July 2019, the Japanese government announced restrictions on the export of three key semiconductor materials (hydrogen fluoride, fluorinated polyimide and photoresist) to South Korea, which greatly disrupted the production plans of South Korean semiconductor companies . The decision sparked a trade dispute between South Korea and Japan and heightened tensions between the two countries.

However, on March 16, 2023, the Japanese government announced the lifting of restrictions on the export of semiconductor materials to South Korea. The decision marks a easing of trade relations between the two countries and also provides a steady supply of materials for South Korea's semiconductor industry. This is a positive signal that will help ease market concerns and boost confidence in the Korean semiconductor industry.

South Korean President Yoon Suk-yue (left) and Japanese Prime Minister Fumio Kishida held talks in Tokyo

It is worth noting that the implementation of the restrictive measures is not out of trade protectionism, but out of the export control policy of the Japanese government. The Japanese government believes that these materials can be used to make military equipment, so export controls are required to ensure safety. The South Korean government sees the measures as a crackdown on its semiconductor industry, fueling tensions between the two countries.

During the period of restrictions, the South Korean government has taken a series of measures to deal with the shortage of materials. For example, the South Korean government has increased financial support for the semiconductor industry, promoting localized production and developing alternative materials. In addition, some South Korean companies have also begun to look for other sources of supply to ensure that their production plans are not affected.

However, on August 9, 2022, the U.S. government issued the "Chip and Science Act" targeting China's semiconductor industry, making the Korean semiconductor industry even worse. South Korea is one of the world's largest semiconductor exporters, and its semiconductor industry relies on supply stability. To a high degree. As the impact of the Chip and Science Act on the semiconductor industry has increased, South Korea's semiconductor exports to China have fallen sharply. Therefore, the lifting of the restrictive measures is seen as a positive signal for the Korean semiconductor industry.

Overall, Japan's lifting of restrictions on exports of semiconductor materials to South Korea is an important development. This means that the trade relationship between the two countries is expected to ease, which will have a positive impact on the economies of both countries. In addition, it is also a positive signal that the international community needs to abide by international trade rules in order to achieve mutual benefit and win-win results.

With the rapid development and increasingly fierce competition in the global semiconductor industry, the stability and reliability of the supply chain is becoming more and more important. Therefore, the international community needs to strengthen cooperation to jointly promote the sustainable development of the semiconductor industry to ensure supply stability and provide support for global economic development.

In short, Japan's lifting of restrictions on the export of semiconductor materials to South Korea is a positive signal, which brings hope for the stable development of trade relations between the two countries and the semiconductor industry. This is an important case of international trade cooperation and also provides a positive example for future cooperation.

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