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South Korea set to invest $854mn annually in micro chip supply chain

South Korea is set to invest around $854.4mn every year to develop home-grown materials and equipment that are used to produce micro-chips, according to Reuters.

Japan has outlined its intent to tighten regulations on exports of some high-tech materials such as smartphone displays and chips to South Korea as the ongoing dispute over South Koreans who were made to work for Japanese companies during WW2 rages on.

Speaking to reporters following a meeting with officials from the presidential office and government ministries, Cho Jeong-sik from the Democratic Party, commented: “We are doing a preliminary feasibility analysis (on the investment).”

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It is thought that the export curbs could affect production of South Korea-based giants, Samsung Electronics, and SK Hynix, with the two chemicals targeted regarded as essential.

The data company, HIS Markit, confirmed that Japanese trade restrictions against South Korea is set to add to the global trade tensions. In a note, Len Jelinek, executive director of semiconductor research at IHS Markit, said: “A reduction or elimination in the availability of these materials will significantly impede the production of memory and other semiconductor chips, impacting major semiconductor manufacturers including Samsung Electronics and SK Hynix.”

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