semiconductor "cold wave" and the impact of South Korea localization, South Korea significantly reduced imports of Chinese neon

Semiconductor"Cold Wave"andSouth KoreaLocalization Impact,South Korea slash imports of Chinese neon

prices for the rare semiconductor gas neon, which was in short supply last year because of the crisis in Ukraine, hit rock bottom in a year and a half.South Korea neonimports also hit an eight-year low. As the semiconductor industry deteriorates, demand for raw materials declines and supply and demand stabilizes.

According to the South Korea Customs Office statistics, South Korea imports last monthneonprice per ton is5.37million dollars (about7000million won), compared with last year6month's290million dollars (about37billion won) down99%, with last year.12month (583,900,000,000) continued to decline compared to a significant decline1/10.neonalso fell sharply. Last month's imports were2.4tons,2014year10month.

neon is the main material of the excimer laser, which is used in the exposure process of engraving fine circuits using light on the wafer (semiconductor optical disk). It is considered an essential raw material in semiconductor processes, but2021, it was completely dependent on imports. So far, South Korea mainly from the global rare gas production.70%of Ukrainian and Russian importsneon, but with RussiaWar in Ukraine, the supply chain is cut off.

last year,South Korea's share of rare gas imports from China rose80-100 percent. At the same time,neonprices last year.6month reached290million US dollars (about37.75billion won), up about the previous year.55times. A semiconductor industry official said,"rare gases are usually stocked three months in advance and contracts are signed at a fixed price, there were no major shocks until the middle of last year."

the price of rare gases has soared due to the imbalance between supply and demand,South Koreagovernments and businesses have acceleratednativetechnology. Last year,POSCOstarts production at the oxygen plant at the Guangyang plantneon.POSCOandTEMC, a company specializing in the production of special gases for semiconductors, collaborated on the development of their own neon production facility, using large air separators to produce steelmaking gas. Neon gas extracted through this process is madeTEMCis refined with its own technology and even made into finished excimer laser gas. The high-purity neon gas produced by the oxygen plant of Guangyang Plant is sufficient to meet the domestic16%. All domestically produced in this wayneonare all sold.

semiconductor manufacturers are also increasingSouth Korea nativethe specific gravity of the rare gas.SKHynix used last yearSouth Koreadomestic products replaced its approximate40%neonusage, and plans to increase this ratio by next year100 percent. It also decided this year6months ago. Following the introduction of domestic neon, Samsung Electronics is also workingPOSCOcooperation to promote xenon localization.

South Koreathe rapid advancement of localization, the share of rare gases imported from China has dropped significantly. Last month a small amount of imports of allneonare all from Russia. In addition, as the semiconductor industry began to deteriorate seriously from the second half of last year, the demand for rare gases such as neon has decreased, and prices are expected to stabilize temporarily. However, one variable is that Russia, a big importer, has extended its ban on rare gas exports to unfriendly countries, including South Korea, until the end of this year in response to US sanctions against Russia.KOTRAofficial said,"rare gas production plants in Ukraine are still closed, and the supply of rare gas from Russia is also unstable.".