SEOUL SEOUL: South Korea's Industry Ministry said on Tuesday the country has launched its first domestic production of filters using nanotechnology, paving the way for self-supply of a key product needed for semiconductor production. According to the Ministry of Trade, Industry and Energy, production will take place at Sinopex Inc. in Dongtan, 40 kilometers south of Seoul. The plant started functioning in 2015, with a capacity sufficient to meet the entire domestic demand. The ministry said South Korea has been relying entirely on imports for the material, with annual demand estimated at 8,000 units or 100 billion won ($69.5 million), Yonhap news agency reported.
The government allocated 12.3 billion won for the project in line with efforts to accelerate research projects aimed at supporting the materials, parts and equipment industries and stabilizing supply chains. The ministry said filters produced by Sinopex are used by Samsung Electronics Co and SK Hynix Inc. Will be done in chip production. “The government will continue to invest in research and development projects for cutting-edge industries to ensure a stable supply chain,” said Lee Seung-ryeol, vice minister of industry policy. Meanwhile, South Korea's semiconductor exports face growing threats from China, Taiwan and Malaysia amid global competition in advanced industries.
The report on the Export Equity Index (ESI) for semiconductors from the Korea Trade-Investment Promotion Agency, known as KOTRA, showed that China is South Korea's top competitor in the sector, with its ESI score in the third quarter of the year Was 72.2. Taiwan's ESI with South Korea in semiconductors grew significantly, rising 7.6 points over four years to 32.5, the largest increase among major semiconductor exporters. Malaysia's ESI increased by 6 points to 50.5 over the same period, the second highest increase after Taiwan. Kotra said Malaysia has emerged as a notable competitor, ranking fifth globally in semiconductor exports and handling 13 percent of the world's semiconductor assembly, testing and packaging processes.
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