Import of Chinese Silicon Wafers to South Korea Soars, Threatening Global Market and Raising Tech Outflow Concerns

According to recent reports from foreign media, the demand for silicon wafers from China to South Korea has significantly increased, with imports reaching a value of $74.882 million in January 2023, nearly matching the amount imported from Japan during the same period. This trend follows a year-on-year increase, with the total value of imported wafers from China to South Korea rising from $424 million in 2020 to $777 million in 2022.

While major manufacturers like Shin-Etsu, Sumco, GlobalWafers, SK Siltron, and Siltronic currently dominate the global wafer market, Chinese manufacturers are rapidly making headway in the 6/8 inch low-end products sector. This presents an opportunity for distributors to explore new sources of supply and potentially diversify their offerings.

However, it's worth noting that concerns have been raised over the potential for technology outflow as some Chinese wafer manufacturers have reportedly hired many Korean engineers to develop technology. This may impact the competitive advantage of Korean distributors and manufacturers in the long run.

Nonetheless, the cost competitiveness of Chinese wafers, with prices reportedly one-tenth of Japanese products, is a significant factor driving the increase in imports. As such, electronic components distributors should keep a close eye on this trend and its potential impact on the market.