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Industry news

South Korea‘s epidemic is escalating, and global semiconductor supply is surging

Time:2020-02-28 Views:640
In terms of new epidemic situation, South Korea has become the country with the second largest number of cases after China. Wen zaiyin‘s government said yesterday that it plans to take "maximum blockade" measures against Daegu and North gyeongshang road. Because South Korea‘s intermediate wealth accounts for 90% of its total exports, leading 61% of China‘s or 55% of Germany‘s, and South Korea dominates the development of global memory chip and display panel field, if the chain is broken, it will hurt Damage to the global IT industry.
The Wall Street Journal reported that South Korea is more important in the global supply chain than other countries of similar economic scale, and the spread of the epidemic may make it difficult for South Korea to maintain its position as an export power.
Kang yushuo, a spokesman for qingwatai, explained that South Korean President Wen zaiyin‘s so-called measures of "maximum blockade" do not mean "closure of the city" or traffic, but to prevent the spread of the epidemic to the maximum extent.
But even if the South Korean government can prevent further spread of the epidemic, the economic activity may cool down for several weeks, and manufacturing industries around the world will soon feel chilly; if South Korea adopts measures similar to Chinese industrial shutdown, global manufacturers will face many medium-term financial chain shocks. Many companies that have been busy looking for alternatives to Chinese made products in the past three weeks may now find parts supplies in South Korea in trouble.
According to the report, South Korea‘s exports account for 44% of its gross domestic product (GDP), second only to Germany among the major advanced countries; the advantage of South Korea is to produce intermediate wealth required by other manufacturers, accounting for 90% of its total exports, and South Korea is a leader in the electronic field, leading the development of memory chips and display panels.
South Korea‘s economy is of medium scale, but its trade is a big country. In 2015, with a population of about 51 million, the value of intermediate goods exported in that year reached US $382 billion, surpassing other countries with larger GDP scale such as France. Once South Korea takes any shutdown measures, it will immediately affect other regions.
SK and LG have worked at home in Daegu
According to trendforce, South Korea accounts for 73% of the global memory market, while Samsung Electronics DRAM (dynamic)
Random access memory) accounted for 43% of the total, followed by SK Hynix 29%. After South Korea raised the alert to the "most severe level" on Sunday, SK Group has asked its Seoul employees, LG (LG) electronics and LG display employees to go to Daegu and work at home for two weeks.
China‘s broken chain Samsung Vietnam factory will run out of inventory
Samsung Electronics said that its Guiwei plant in South Korea was shut down for two days after an employee confirmed the infection at the end of last week, and the plant resumed normal operation at 1:00 p.m. on Thursday, "it is expected that production will not be affected"; however, under the supply chain disruption in China, Samsung Vietnam plant‘s Chinese component library will dry up, and new machine production may face delay difficulties. Samsung has just released the latest folding mobile phone and galaxy s205g mobile phone.
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