Japan’s Sanctions on the Export of Semiconductor Materials： Will Storage Products’ Prices Increase?
The prices of DRAM memory and NAND flash memory had consistently declined in 2018. Located in Yokkaichi, Japan, the five wafer fabrication of Toshiba has encountered power outage in the mid-June , which might change the fate of NAND flash memory for more than a year. After Toshiba’s power outage, the market of flash memory and memory has met new trouble that Japan wants to use semiconductors to sanction South Korea.
Japan plans to impose the restriction on the export of Japanese semiconductor materials and OLED display panel material to Korea from July 4th . The three types of materials export to Korea include fluorine polyimide applied for OLED panels on televisions and mobile phones and core material photoresist and high-purity hydrogen fluoride in semiconductor manufacturing. It is reported that Japan monopolizes the global market of fluorine polyimide and hydrogen fluoride materials, accounting for 90% and 70% of global shares respectively.
According to Samsung’s financial reports, the overall venue of of Samsung Electronics for the second quarter of 2018 is $ 52.3 billion. Among them , Samsung’s chip business has made the largest contributions , reaching $ 16.5 billion. In this year, Samsung Electronics has already predicted that the venue for the second quarter in this year will be less than that of last year. And, an important factor is the low sales price of memory and weak demand.
Japan’s sanctions on Korea will directly affect South Korea's semiconductor and panel two pillar products, including display screen panel products by screen manufacturers Samsung, LG, etc. and memory and flash memory products by Samsung and SK Hynix. As a leading supplier, Japan has also affected different types of customers, including the terminal manufacturers of Apple, Google、Sony、Huawei、OPPO、vivo.
SK Hynix has already said that its inventory is less than three months. If it reduces or stops production without enough material supply, the prices of DRAM memory and NAND flash memory will be significantly increased.
Samsung hasn’t delivered evaluation report. If the sanction is launched, Samsung will suffer seriously. Not only screen and storage products but also chip foundry provided by Samsung semiconductors has been affected. It is believed that the prices of other chips may be increased.