China's semiconductor industry is developing rapidly. South Korean companies also feel that China will be his greatest threat. The rise of BOE has brought them more fear. Perhaps BOE is the story of the Chinese version of LG and Samsung. The semi-conductive war between China and South Korea will likely start full-scale next year.
In recent years, the mainland has been making every effort to develop the semiconductor industry. As the national pillar industry of South Korea, South Korea has been worried about the development of semiconductors in mainland China, fearing that the mainland’s “boeing of the rise of the BOE†will repeat itself. A few days ago, Korea’s Korean business website pointed out that with the Yangtze River’s storage, The 3DNAND (flash memory) factory in Wuhan, and the DRAM plants in Jinjiang and Hefei will be put into operation one after another. Semiconductor companies in China and South Korea will start a "full war" next year.
Prior to semiconductors, the mainland panel industry had caused a serious threat to South Korea. Recently, the mainland's BOE has produced AMOLED flexible panels to break the monopoly of Korean companies. In fact, in the early 1990s, 90% of the world's LCD panels were produced in Japan. Later, South Korea’s Samsung and LG companies defeated Japan’s panel industry with fierce offensive power. Now that BOE has risen, South Korea believes that “BOE is the story of the Chinese version of LG and Samsungâ€. Next, the mainland continues to advance on the road to semiconductor development. South Korea is also feeling increasing pressure.
The total number of covered 15 factories over Taiwan, Japan, and Korea in 2 years
North Korea’s Korean business website under Korea Daily reported that the mainland is investing huge amounts of capital in the semiconductor industry. From this year to 2019, there are 15 semiconductor factories under construction in mainland China, compared with South Korea (3) and Japan (4). The Taiwan region (7) will add more. By next year, the mainland's semiconductor investment will account for 21% of the world's total, second only to South Korea.
The 3D NAND plant, which is built in Wuhan by Tsinghua Unisplendour and stored in Wuhan, is expected to be ready for production in the second quarter of next year. The memory produced is only three years away from the world's advanced level. Other DRAM plants such as Jinjiang and Hefei are expected to reach volume production by the end of next year. South Korea’s “World News†predicts that, no matter what, the global semiconductor market will have a big battle next year.
American, Japanese, and South Korean talents excavating
In addition, the mainland has also been catching up with talents. The report pointed out that Liang Mengsong, a super-technical expert who had previously gathered Front Electronics and Samsung, was dug by SMIC, and 50 U.S. engineers were subsequently summoned by Chinese companies. . "The mainland is trying to ensure that semiconductor technicians are working in all three countries, the US, Japan and Korea."
The key is that the mainland has a huge demand for semiconductors. Once the mainland’s own products come out, there will be a large number of local companies such as Huawei, Xiaomi, OPPO, vivo, and Lenovo paying for it. Mainland semiconductor companies can easily take the middle and low-end market. This is a fatal blow to South Korea, where semiconductor exports account for 16% of total exports.
The worrying South Korean government has tried to prevent Samsung and Hynix from building factories in the mainland. However, South Korea’s “Central Daily†pointed out that it is not that companies are not afraid of technological leakage, but that the Chinese market is so large. If they do not set up factories in the country, it would mean that the market would be lost. . Without the financial support brought by the market, what does South Korea rely on to maintain its own technological leadership?
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