South Korea: Attracting advanced companies: Nissan Chemical, Showa Denko, Tokyo Ohka
-Gyeonggi-do declared ” Independence of semiconductor material tech from Japan”-
Korean municipality:
Korean municipality is turning to “Attract Japan’s advanced semiconductor material manufacturers”
Traditionally, Korean local governments have shown a strong stance toward Japan.
Nissan Chemical:
April 29,
With Nissan Chemical Industries, a semiconductor device manufacturer
NCK, a local subsidiary in South Korea,
In Chungcheongnam-do and Matsuyama 2 Industrial Park, Karatsu City
A memorandum of understanding (MOU) for the construction of a new factory was signed.
Korean subsidiary NCK:
NCK is a subsidiary established in Pyeongtaek, Gyeonggi-do in 2001 by Nissan Chemical Industries, Ltd. with a 90% stake.
Samsung Electronics:
In August of last year, the world’s largest semiconductor factory, Hirasawa 2 Line, started operation.
NCK Factory:
It is located across the river.
There is a “tax incentive system” when “foreign companies invest more than a certain amount”.
Daikin Industries:
In January of this year, Daikin Industries signed a memorandum of understanding to build a new factory.
Daikin Industries has a 28% share of the Korean semiconductor manufacturing gas market.
Supply of high-purity hydrogen fluoride:
Daikin Industries, Ltd. provides high-purity hydrogen fluoride required for semiconductor manufacturing.
It is produced in Japan and China and supplied to Samsung and SK Hynix.
C & G High Tech:
Joint venture with C & G High-Tech Co., Ltd. of Korean semiconductor manufacturing equipment
A new factory will be built and 50 people will be hired by investing 4 billion yen in 5 years on the Karatsu city site.
Showa Denko Materials (formerly Hitachi Kasei):
It plans to invest 11 billion yen in Ansan City, Gyeonggi Province to build a new plant.
In 2016, SK Showa Denko was established as a joint venture with SK Materials to produce semiconductor materials.
It plans to build a new plant and increase production capacity by 30%.
Tokyo Ohka Kogyo:
Tokyo Ohka Kogyo has doubled its production capacity by making an additional investment in the Songdo Plant in Incheon City.
In 2012, Tokyo Ohka Kogyo established TOK Tip Material as a joint venture with Samsung C & T Corporation.
Manufactures photoresists, which are the core material of semiconductors.
The Korean market is an important market, accounting for 14% of the company’s sales and 16% of its operating profit.
Gyeonggi Province Boycotts of Japan’s Ordinance:
Gyeonggi-do has proclaimed “De-Japan’s technology independence”.
It has enacted a “non-buying ordinance not to purchase Japanese products”.
However, it will support 200 billion won for 5 years to Gyeonggi-do companies of materials, parts and equipment.
Attracting companies other than Japan:
November 2019:
We have succeeded in attracting Lam Research, the world’s largest semiconductor equipment company.
2020:
Attracted Surplus Global, the world’s top semiconductor used equipment.
April 2021:
An investment agreement was signed with Air Products & Chemicals, Inc. of the United States, which manufactures industrial gas.
Items subject to strengthened export control:
Currently,
A factory in South Korea established by a Japanese company
Based on raw materials imported from Japan etc.
Items subject to export control are domestically produced.
Korean companies are promoting “domestic production” of raw materials imported from Japan.
Advantages of establishing a Korean factory:
If produced at the Korean factory,
The complicated export procedure from Japan can be simplified.
It also has the advantage of being easy to deliver according to the demands of Korean companies.
Employment can be protected even for Korean local governments.
The products of the Korean factory are
Because it is counted as made in Korea
It can be claimed that domestic production was promoted.
Gyeonggi Province, each municipality:
Tax incentives, rent reductions and exemptions,
With various incentives,
We would like to attract Japanese companies.
Newsweek official site
https://www.newsweekjapan.jp/stories/world/2021/05/post-96284.php