According to ZDNet, South Korea may lead in memory products like DRAM and NAND flash, but it remains heavily dependent on Japan for critical materials. The report, citing sources, warns that unless localization advances more quickly, this reliance could become a structural risk for the country in the AI and HBM race.
The report notes that in SK hynix’s HBM value chain, the ultra-fine TSV (Through-Silicon Via) stacking structure relies on key materials and equipment largely monopolized by Japanese firms. It highlights underfill — essential for HBM stacking — as being supplied almost exclusively by Japan’s NAMICS. With few alternatives available, localization has been slow, the report adds.
In addition, SK hynix sources a large share of silicon wafer from Shin-Etsu Chemical, which today controls about 30% of the global semiconductor wafer market, the largest share worldwide, as the report indicates. According to the report, combined with SUMCO, Japan’s share in this sector is estimated to reach as much as 70% of the global market.
Japan remains central to HBM production, with SK hynix sourcing most of its photoresists (PR) from Tokyo Ohka Kogyo (TOK) and relying on JSR and Asahi Kasei for encapsulation materials (EMC), all critical to making HBM, the report notes.
Japan’s Lead in Semiconductor Materials
One reason South Korea has been slow to establish its semiconductor materials supply chain is that Japanese firms already possess 20–30 years of accumulated data and customer trust. As the report indicates, even if Korean companies develop substitutes, it takes years before they can be qualified for mass production.
The report further notes that technological barriers are significant. Although Korea has players such as LG Chem and Lotte Chemical, their expansion into semiconductor materials is comparatively recent, the report notes.
Beyond South Korea, China is also working to boost self-sufficiency in semiconductor materials and chemicals. According to Nikkei, Huawei is reportedly backing efforts to build a chemical firm, Zhuhai Cornerstone, into a full “end-to-end” supplier capable of competing with global leaders such as Shin-Etsu Chemical and JSR.
South Korea’s Equipment Dependence and Localization Efforts
Equipment is another area of strong dependence on Japan. According to the report, grinding and dicing machines for thinning wafers are dominated by Japan’s DISCO, which holds over 90% of the global market. At the same time, some localization progress has been made, with Korean firms such as Wonik IPS (etching), PSK (cleaning), and Hanmi Semiconductor (bonding and inspection) supplying critical equipment for SK hynix’s HBM production.
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(Photo credit: NAMICS)
Please note that this article cites information from ZDNet and Nikkei.
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