South Korea's latest report: China's semiconductor supply chain still plays a pivotal role

According to a report by Yonhap News Agency on the 22nd, the Sustainable Growth Initiative (SGI) of the Korea Chamber of Commerce and Industry released the "Analysis and Insights on the Import-Export Integration Degree of the Five Semiconductor Powers (Regions)" report on the same day. The report stated that "the trade interdependence among semiconductor powers other than the United States remains very high, so it is difficult to restructure the supply chain centered on the United States and its allies in a short time."
 
The report analyzed the degree of complementarity among the five major semiconductor powers and regions of South Korea, the United States, mainland China, Taiwan region of China, and Japan through China's import-export integration degree. The import-export integration degree is an indicator that represents the trade connectivity between each other. A value greater than 1 means that the trade relationship between the two countries is complementary. If it is less than 1, it indicates a low degree of trade complementarity.

Yonhap News Agency quoted the report as saying that as of 2022, mainland China has a relatively high export integration degree of memory semiconductors with South Korea, which is 2.94, and also has a relatively high export integration degree of system semiconductors with Taiwan region of China, which is 1.52.

According to the report's analysis, in terms of imports, mainland China has a complementary relationship with South Korea, Taiwan region of China, and Japan. However, the export integration degree of memory semiconductors with the United States is 0.62, and the import integration degree is 0.88. The trade complementarity between China and the United States in this regard is relatively low.

Yonhap News Agency quoted the report as saying: "China still plays a role as a global semiconductor manufacturing supply chain hub. Memory semiconductors and system semiconductors maintain close production relationships with South Korea and Taiwan region of China respectively."

The report shows that in 2022, 40% of South Korea's exports of electronic and optical instruments to China are intermediate materials, and 28% are products produced in China and then exported overseas. Yonhap News Agency reported that "this means that South Korea's semiconductor industry exports still exist in the global supply chain where China is at the center."
                             
Jung Hyung-kun, chief researcher at the Korea Institute for International Economic Policy, emphasized: "China's market share in the general semiconductor market continues to increase, and its status as a semiconductor demand market will also be maintained temporarily. Therefore, South Korea needs to manage its cooperative relationship with China well." At the same time, he also said that the issue of "decoupling" needs to be handled carefully. The report mentioned that after the Sino-US trade conflict, the supply chain restructuring of South Korea's semiconductor sector should become an opportunity to strengthen South Korea's domestic ecosystem. The government should expand the construction of semiconductor clusters and strengthen infrastructure construction such as power supply.

Earlier, the Semiconductor Equipment and Materials International (SEMI) released a prediction stating that from 2025 to 2027, semiconductor manufacturers in various countries will invest approximately US$400 billion in computer chip manufacturing equipment. Among them, mainland China, South Korea, and Taiwan region of China will be in a leading position. SEMI said that mainland China is expected to continue to maintain its position as the largest spending region. Driven by the policy of self-sufficiency, it will invest more than US$100 billion in the semiconductor industry in the next three years. At the same time, it predicts that South Korea's spending during the same period will be about US$81 billion.
 

 WLS hot－sale chips

                                                                                    
           MAX14830ETM                                                               TDA7266D                                                                        CD4030BE                                            AD7606BST