The scale of Chinese foundries has expanded, and from January to October, the export value of Korean semiconductor blank masks to China reached 16.96 million US dollars
Nov 22,2024
With the rapid development of Chinese foundries, South Korean companies' exports of key semiconductor materials are also on the rise. However, due to the influx of Chinese products, domestic contract manufacturing companies in South Korea are facing dual challenges of declining utilization rates and price wars.
According to data released by TRASS on November 20th, the export value of South Korean semiconductor blank masks to China from January to October this year was $16.96 million (approximately 24 billion Korean won). Compared to the full year of $14.1 million in 2023, it has increased by 20.28%. Thanks to the supply to China, it is expected that the total export volume for the whole year will reach a historic high.
Semiconductor blank mask is an essential material in photolithography process, which uses light to print circuit patterns on wafers. In South Korea, we mainly produce blank masks for general semiconductor processes of 7nm and above. The Chinese semiconductor industry lacks the ability to independently supply blank masks, so they are mainly supplied by Korean companies such as S&S. The increase in exports of blank masks to China is an important indicator of China's active investment in general (traditional) semiconductors.
Chinese contract manufacturing companies are actively expanding their scale. It is worth noting that as production capacity increases, utilization rates are also on the rise. With the pressure from the United States on China and the strong push for the rise of semiconductors domestically, Chinese semiconductor companies are seeking cooperation with domestic foundries.
In terms of price competitiveness, traditional Chinese companies are gaining a competitive advantage over Korean companies by rapidly expanding production capacity and utilizing low labor costs. Although companies like S&S Tech benefit from the expansion of Chinese foundries, traditional Korean foundries such as Samsung Electronics' 8-inch foundries, DB HiTek, and SK Key Foundry are struggling to secure orders and profits. Taking DB HiTek as an example, its utilization rate was as high as 96.74% during the traditional semiconductor supply crisis in 2021, but it has dropped to 74.43% by the third quarter of this year.
According to data released by TRASS on November 20th, the export value of South Korean semiconductor blank masks to China from January to October this year was $16.96 million (approximately 24 billion Korean won). Compared to the full year of $14.1 million in 2023, it has increased by 20.28%. Thanks to the supply to China, it is expected that the total export volume for the whole year will reach a historic high.
Semiconductor blank mask is an essential material in photolithography process, which uses light to print circuit patterns on wafers. In South Korea, we mainly produce blank masks for general semiconductor processes of 7nm and above. The Chinese semiconductor industry lacks the ability to independently supply blank masks, so they are mainly supplied by Korean companies such as S&S. The increase in exports of blank masks to China is an important indicator of China's active investment in general (traditional) semiconductors.
Chinese contract manufacturing companies are actively expanding their scale. It is worth noting that as production capacity increases, utilization rates are also on the rise. With the pressure from the United States on China and the strong push for the rise of semiconductors domestically, Chinese semiconductor companies are seeking cooperation with domestic foundries.
In terms of price competitiveness, traditional Chinese companies are gaining a competitive advantage over Korean companies by rapidly expanding production capacity and utilizing low labor costs. Although companies like S&S Tech benefit from the expansion of Chinese foundries, traditional Korean foundries such as Samsung Electronics' 8-inch foundries, DB HiTek, and SK Key Foundry are struggling to secure orders and profits. Taking DB HiTek as an example, its utilization rate was as high as 96.74% during the traditional semiconductor supply crisis in 2021, but it has dropped to 74.43% by the third quarter of this year.