Japan's Export Restrictions Projected to Have Limited Effects on Korean Semiconductor Producers

The Japanese government's action to regulate semiconductor material exports to Korea will not affect semiconductor production by Korean chipmakers, NH Investment & Securities said on July 3.

"We have found out that the Japanese government’s restrictions on resists were limited to EUV resists,” said an analyst at NH Investment & Securities. “EUV resists can only be produced by Japanese companies such as JSR and Shin-Etsu, but Samsung has not yet adopted an EUV process."

"A main resist used in DRAMs is for argon fluoride (ArF) immersion exposure equipment and a commonly used resist in 3D NAND processes is for KrF immersion exposure equipment,” he said. “ArF has a wavelength of 193 nm and KrF 248 nm. The Japanese government has decided to regulate resists optimized for light with a wavelength of below 193 nm. Thus, the two items are not subject to export restrictions.”

“The export licensing system for three items -- fluorine polyimide, resists, and hydrogen fluoride -- will exert limited effects on Korean companies,” he said "Rather there is a growing concern about damage to Japanese companies."