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Thursday, September 21, 2017

South Korea and China trade war has intensified.

http://english.etnews.com/20170919200001

South Korea has decided to halt its semiconductor and display manufacturer from setting up factories in China in retaliation.  However, this move will hurt its Korean businesses.

Why?

China has already produced its own Kirin 970 AI chip which will be used on China-made mobile phones and Sharp is going to produce 8K display panels in China Foxconn factory.  Furthermore, TSMC is also producing its A11 chips in China too.  Therefore, I don't see any technology transfer from SK to China.  Instead, SK manufacturers will lose their competitive edges when they don't set up their factories in China because it will take a longer time to deliver their products to China consumers.  The production cost will also be higher when they don't set up factories in China.

Good luck to SK as SK is slowly killing its own businesses.

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