South Korea: No-Japan on the front, company invitation on the back: 3 items of semiconductor materials
-Whereabouts of “technology independence in South Korea”? –
In South Korea, the strongest anti-Japanese stance was Gyeonggi-do governor Lee Jae-myung, who is aiming for the position of president-elect. Twice
Governor of Gyeonggi Province
Lee Jae-myung
Gyeonggi Province is the largest municipality in South Korea with a population of 13 million. Twice
Semiconductor companies in Gyeonggi Province:
Pyeongtaek
It is known as Samsung Electronics’ company town where the semiconductor factory is located.
Icheon City
SK Hynix Semiconductor Factory,
Paju City
LG Display’s industrial parks, corporate factories and offices are gathered here.
These factories
In addition to 3 items of semiconductor materials
Many depend on Japanese companies.
It is “the region most affected by the strengthening of export control by the Japanese government”.
Declaration of “de-Japanese technology independence”:
In July 19th, Gyeonggi-do, where Governor Lee Jae-myung raised anti-Japan, immediately declared “de-Japan technology independence.”
For local companies in material / parts / equipment research and development
Over 200 billion won in 5 years
I made a plan to support.
Enacted “Non-buying Ordinance for Japanese Products”:
In 2012, the Korean government agency created a “war criminal company list”.
“Non-buying ordinance to prevent public institutions from purchasing the products of 273 Japanese companies” was enacted.
Attracting leading overseas companies:
Gyeonggi-do has made efforts to “attract companies from countries other than Japan.”
Lam Research
In November 2019, we succeeded in attracting Lam Research, the world’s largest semiconductor device company in the United States.
Surplus Global
In June 2008, we invited Surplus Global, one of the world’s leading semiconductor used equipment distribution companies.
Air Products & Chemicals
In May 2009, we invited Air Products & Chemicals, which manufactures industrial gas.
By May 2009, it had attracted more than 10 companies.
Failure to produce alternatives:
But in the end, that strategy didn’t work either.
Japanese company expatriate in South Korea:
From Korean local companies and US companies
Even if Korea can procure a semiconductor replacement
If combining them with different materials and parts,
In many cases, the expected results are not obtained.
Forbidden “Attracting Japanese Companies”:
Then, Gyeonggi-do pushed forward to “de-Japan” with a five-year plan.
However,
On your own, without getting definitive results
Due to the expansion of telework due to the influence of corona
Demand for semiconductor products has skyrocketed.
Responding to the rapid increase in semiconductor demand:
Samsung Electronics
In August 2020, the Hirasawa 2 line, the world’s largest semiconductor factory, started operation.
In August 2009, it announced an investment plan of 23 trillion yen, including the construction cost of a new semiconductor factory of 2 trillion yen.
SK Hynix
The company announced that it will make a capital investment of 1 trillion yen.
Both companies are now required to have immediate solutions.
Gyeonggi-do solution:
In the face of rising global demand for semiconductors
“Promotion of domestic production”
“Suppressing imports from Japan”
“Does not interfere with local global companies”
Gyeonggi-do sought solutions to three issues and came up with an answer.
“Attracting Japanese semiconductor companies”.
Attracting Japanese companies to South Korea:
“Products manufactured by Japanese companies in South Korea” are numerically counted as made in South Korea.
Also, if the materials and parts are “made in Japan”, there is no need to worry about “combination defects”.
It can be used by Korean companies as it is.
Large expansion of Japanese companies:
Showa Denko Materials (formerly Hitachi Kasei)
Ansan City, Gyeonggi Province
In fact, Showa Denko Materials (formerly Hitachi Kasei), a subsidiary of Showa Denko, has invested 11 billion yen in Ansan City, Gyeonggi Province to build a new factory.
The company, which established SK Showa Denko as a joint venture with SK Materials in 2016, plans to increase its production capacity in South Korea by 30%.
The operation is scheduled to start in October.
By the way, Showa Denko is listed in the “List of Korean Government War Criminal Companies”.
Chungcheongnam-do, which is adjacent to Gyeonggi-do, also invited “Korean government war criminals”.
Daikin Industries
Dangjin, Chungcheongnam-do
In January 2021, a joint venture between Daikin Industries and Korea Semiconductor Manufacturing C & G High-Tech signed an MOU to build a new factory in Matsuyama, Dangjin City, Chungcheongnam-do.
Daikin Industries has a 28% share of the Korean semiconductor manufacturing gas market.
Etching gas (high-purity hydrogen fluoride) required in the semiconductor manufacturing process is produced in Japan and China.
It has been supplied to Samsung and SK Hynix.
Nissan Chemical
Dangjin, Chungcheongnam-do
In April, semiconductor device manufacturer Nissan Chemical and NCK, a local subsidiary in South Korea, also signed a memorandum of understanding (MOU) with Chungcheongnam-do to establish a new factory in Matsuyama 2 Industrial Park in Dangjin City.
NCK is a subsidiary established in Pyeongtaek, Gyeonggi-do in 2001 with the investment of Nissan Chemical.
We research, manufacture, and sell semiconductor and display materials.
Like Showa Denko, Daikin Industries and Nissan Chemical are also listed in the “War Criminal Companies” list.
Benefits of Korean municipality:
It can be argued that the Korean municipality, which attracts Japanese companies, protected local employment and promoted domestic production.
On the other hand, this also has merits for Japanese companies.
Benefits for Japanese companies:
Export procedures were complicated by the exclusion of South Korea from White.
But,
When produced at the Korean factory,
The procedure can be simplified and
It will be easier to deliver according to the demands of Korean companies.
again,
If a Japanese company produces in South Korea
Procurement from a third country of Korean companies,
Can be prevented.
Governor of Gyeonggi Province
Lee Jae-myung
While raising anti-Japanese in the table,
Behind the scenes, attract “war criminal companies”
Governor of Gyeonggi Province, Lee Jae-myung
He is currently the leading candidate for the next president.
Bungei Online