In early July, Japan imposed export controls on South Korea. South Korea imports 83% of the display industry from Japan, while OLED and other industries are even 100% dependent on Japan. However, the Nikkei News reported that orders for Japanese electronic parts, which are regarded as the leading indicators of global prosperity, have slowed down, resulting in an 8% reduction in orders for the top six electronic parts factories in Japan in the second quarter. This is the third quarter in a row that has shrunk, and the decline has increased from about 7% in the previous quarter, the largest reduction in three years. The decline in the order volume of Japan’s six major electronic component factories is only a microcosm of the current situation of electronic companies, and many electronic companies in Japan are in trouble. In order to solve this dilemma, Japanese electronics companies began to learn from South Korea and turned to the Chinese market.
Japan’s air-conditioning industry giant Daikin Industries intends to invest heavily in the field of fluorine resin for semiconductors and battery materials. It plans to invest 40 billion to 50 billion yen to increase the production of fluorine resin and new research and development in China’s second plant by 2022. Related readings Japan-South Korea relations deteriorate Busan cancels exchange activities Airlines reduces flights. British media advises Japan and South Korea: Trade disputes prolonged to China’s more favorable, Japan and South Korea trade wars thoroughly showdown, the two countries ushered in “decision fate a week”. The report said that South Korea’s semiconductor import reduction may have an impact on Daikin’s business. Daikin Chemical Business Minister Mi Pu Ke said, “The current global semiconductor market recovery is already later than expected, due to this incident, it is possible to further delay.” This is why the company wants to increase investment in China. Ferrotec, another Japanese semiconductor materials, and equipment parts manufacturing company, also chose to increase its investment in China.
The Lianhe Zaobao reported that the Japanese company plans to increase its equipment investment in FY 2019 by 30% to 48 billion yen. Among them, investment for China accounted for 96%, reaching 46 billion yen. Data show that global semiconductor sales in 2008 were $468.8 billion, and the value of imported semiconductors in China was $312 billion, accounting for 66.667%. China’s own semiconductors account for about 7.9% of the world’s total, which means that 26% of the market, nearly $120 billion, is dependent on imports. Moreover, China is striving to improve its semiconductor production capacity. Japanese companies will invest and build factories in China at this time, and they will also have the opportunity to join the upgrade plan of China’s semiconductor factories, thus benefiting.