“Continuously facing issues not with technology but with supply capacities in the semiconductor sector”
Chairman Choi Tae-won of the Korean Chamber of Commerce and Industry answering questions at a meeting with the Korean Chamber of Commerce and Industry reporters at a hotel in Jung-gu, Seoul on the 2nd. (Provided by the Korean Chamber of Commerce and Industry)
(Seoul=news1) By Reporter Kim Jae-hyun = Choi Tae-won, Chairman of the Korean Chamber of Commerce and Industry, stated, “There seems to be a relative improvement this year due to the fact that the semiconductor industry was very bad last year,” adding, “I think that this improvement will not last long when looking at how far it will go.”
Choi, speaking at a meeting with the Korean Chamber of Commerce and Industry reporters held at a hotel in Jung-gu, Seoul, mentioned the recovery of the domestic semiconductor industry that has begun, saying, “I believe that the roller coaster of the semiconductor industry will continue in the future.”
He diagnosed, “A few years ago, during the phase of COVID-19, demand unexpectedly surged more than it should have, but as COVID-19 was effectively lifted, the excess demand disappeared at the beginning of last year,” adding, “Furthermore, due to the significant economic impact and the slowdown in consumption, semiconductor demand also declined.”
Although this day’s journalist meeting was prepared for Chairman Choi’s reappointment as the Korean Chamber of Commerce and Industry Chairman, he also responded to questions related to the business of major affiliated companies such as SK Group.
Regarding the recently popular semiconductor subsidies, he evaluated, “The semiconductor sector, where miniaturization has become difficult, is continuously facing problems that need to be solved not with technology, but by expanding supply through capital expenditures (CAPEX),” and added, “As there are countries desiring companies to bring semiconductor production back to their country amid corporate investment contraction, discussions on subsidies are emerging.”
He further stated, “In the long term, there are concerns about how to resolve the issue of high corporate capital expenditures in Korea, so that’s why discussions on subsidies are emerging,” adding, “One of the remaining tasks is how much more to invest in CAPEX and how long to sustain it in the industry.”
Regarding the struggling battery industry due to the temporary demand slump in EVs (electric vehicles), he said, “The impact is on the battery, related materials, and supply chains due to the ‘cathode effect’ of EVs, but I do not think that EVs will disappear at all and will continue”
He mentioned, “Globally, the emphasis on ESG and climate change is declining, and the atmosphere is shifting towards methods that are believed to be more economically effective,” and added, “I believe that this trend will not last long and in the long run, it will come back to focusing on ESG and climate change.”