Over the past five years, South Korea’s reliance on China’s key raw materials for semiconductors has soared.
According to data released by the Ministry of Trade, Industry and Energy in September. From 2018 to July 2022, South Korea’s imports of silicon wafers, hydrogen fluoride, neon, krypton and xenon from China surged. South Korea’s total imports of five semiconductor raw materials were $1,810.75 million in 2018, $1,885 million in 2019, $1,691.91 million in 2020, $1,944.79 million in 2021, and $1,551.17 million in January-July 2022 .
During the same period, South Korea’s imports of five items from China increased from $139.81 million in 2018 to $167.39 million in 2019 and $185.79 million in 2021. This year, they were $379.7 million between January and July, up 170% from their 2018 total. China’s share of these five imports to South Korea was 7.7% in 2018, 8.9% in 2019, 8.3% in 2020, 9.5% in 2021, and 24.4% from January and July 2022. That percentage has nearly tripled in five years.
In terms of wafers, China’s share rose from 3% in 2018 to 6% in 2019, then 5% in 2020 and 6% last year, but soared to 10% from January to July this year. China’s share of South Korea’s total hydrogen fluoride imports rose from 52% in 2018 and 51% in 2019 to 75% in 2020 after Japan restricted exports of hydrogen fluoride to South Korea. It rises to 70% in 2021 and 78% from January to July this year.
South Korea is increasingly reliant on Chinese noble gases such as neon, krypton and xenon. In 2018, South Korea’s neon gas imports from China were only $1.47 million, but surged about 100-fold to $142.48 million in the five-year period from January to July 2022. In 2018, neon gas imported from China accounted for only 18%, but in 2022 it will account for 84%.
Imports of krypton from China surged about 300-fold in five years, from $60,000 in 2018 to $20.39 million between January and July 2022. China’s share of South Korea’s total krypton imports also increased from 13% to 31%. South Korea’s xenon imports from China also increased by about 30 times, from $1.8 million to $5.13 million, and China’s share climbed from 5 percent to 37 percent.
Neon gas market trend
Geographically, the neon gas industry is experiencing rapid growth, especially in the Asia-Pacific region, due to its use in the manufacture of semiconductors and consumer electronics. In North America and Europe, its applications in the automotive, transportation, aerospace and aircraft industries are driving its consumption. Demand for manufacturing semiconductors in the Japanese market is rising sharply. However, demand for neon gas is expected to increase as space agency exploration activities in this area grow. In the Asia-Pacific region, several large-scale oxygen production projects have been put into operation and are expected to continue to grow, especially in China. In addition, more than half of the world’s neon crude supply is concentrated in Russia and Ukraine. Due to the enhanced cooling capacity, semiconductors, coolants for ultra-sensitive infrared imaging and detection equipment, the healthcare industry, etc., neon gas has been widely used in various applications such as cryogenic coolants. Neon is used as a cryogenic refrigerant because it condenses into a liquid at very cold temperatures. Neon is generally acceptable because it is non-reactive and does not mix with other materials. In the neon gas industry, technology launches, acquisitions and R&D activities are the main strategies adopted by players. Neon is generally acceptable because it is non-reactive and does not mix with other materials. In the neon gas industry, technology launches, acquisitions and R&D activities are the main strategies adopted by players. Neon is generally acceptable because it is non-reactive and does not mix with other materials. In the neon gas industry, technology launches, acquisitions and R&D activities are the main strategies adopted by players.
Post time: Sep-23-2022
