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Japan strengthens control over exports of semiconductor materials to South Korea

SemiMediaEdit
July 2, 2019

Japan's METI (Ministry of Economy, Trade and Industry) announced yesterday that it will revise its export control regulations for South Korea and strengthen the control of displays and semiconductor materials. According to South Korean media reports, although Japan does not completely ban exports to South Korea, it will not cause major losses for the time being, but it may further worsen Japan-Korea relations.

Export-restricted materials include fluorinated polyimide, resist, and high purity hydrogen fluoride. These three products are essential materials for the manufacture of semiconductors and display panels, and export restrictions will have a great impact on Korean related industries.

In fact, although the law will also affect the Japanese raw materials industry, the Korean semiconductor and display industry are more dependent on Japan. The Korean manufacturing industry may face downtime due to lack of raw materials, threatening the Korean semiconductor and display industries.

Another industry insider believes that South Korean semiconductor and display panel manufacturers have foreseen the degree of impact, and that these companies generally adjust their strategies with changes in the environment, believes that they are keeping a certain amount of inventory and will not immediately affect the production plan.

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