The United States controls semiconductor exports to China, and Korean media complains: South Korea has become the "biggest victim"

　　[Global Times special correspondent in South Korea Ding Ling] "In the semiconductor field, South Korea has become the biggest victim of competition between the United States and China." "Korea Economy" reported in a report on the 30th that due to the impact of the US control measures against China in the semiconductor field, South Korea Exports of semiconductor equipment and materials to China have declined sharply, but Japan's exports to China in related fields have increased. Such a result made the Korean media reflect and feel "uneasy".

　　"Korea Economy" analyzed newly released data from the Korea International Trade Association and found that China's imports of semiconductors and equipment from South Korea dropped from US$82.4 billion in 2018 to US$66.2 billion in 2023, a shrinkage of 19.63%. During the same period, China's imports of semiconductors and equipment from Japan increased from US$15.8 billion to US$20.8 billion, an increase of 31.2%. This difference is even more obvious in semiconductor raw materials, components and equipment. China's imports from South Korea fell from US$6.5 billion in 2018 to US$3.2 billion in 2023, a 50.5% decrease. During the same period, China's imports from Japan increased from US$10.6 billion to US$11.4 billion, an increase of 8.46%.

　　Some analysts in South Korea believe that the United States' control measures in the semiconductor field caught South Korea "off guard" and lacked the time and space to adjust its response. "Korea Economy" stated that the differences between Japan and South Korea are more due to the different product directions and market structures of the two countries. The Japanese semiconductor industry's exports to China mainly focus on market segments that are not subject to U.S. export controls, and involve semiconductor-related materials, parts, equipment and other fields. Japan has built advantages through technological progress and formed technical barriers that are difficult to replace.

　　According to the report, taking automotive semiconductor technology as an example, since China has demand in related fields and related technologies are not subject to U.S. export restrictions, the market space for China to import from Japan has increased. Japan's Renesas Electronics, the world's third largest automotive semiconductor company, has announced plans to restart a previously closed semiconductor factory after 10 years to double production. In sharp contrast, South Korea's Samsung Electronics, SK Hynix and other semiconductor companies have experienced sharp declines in exports to China due to the impact of U.S. export controls and declining demand in China. Some Korean industry insiders said that the decline in exports to China and the industry downturn have caused a "double blow" to the above-mentioned Korean companies.

　　Some experts in South Korea believe that South Korea will continue to be the "biggest victim" in the competition between the United States and China for some time. Some voices in South Korea believe that under the US export ban, China's self-sufficiency rate in the semiconductor field continues to increase, which may further squeeze the export space of Korean companies. "If we do not upgrade technology in the cutting-edge semiconductor field, we will become 'irreplaceable.'" On the supply side, South Korea’s exports are likely to fall into a long-term depression.”