Japan approves EUV photoresist and etching gas exports Samsung: insist on localization

One month after imposing export restrictions on South Korea, the Japanese government approved export licenses for EUV photoresists and etching gases to South Korea. There are different opinions in South Korea about this, some believe it is a show for the international community, while others believe it is a concession. The industry has not yet made a judgment and has chosen to continue to pay attention to the development of the situation.

On August 8, 35 days after the Japanese government implemented export restrictions on South Korea, the Japanese government approved the export of EUV photoresist and etching gas, and the approved materials will be supplied to Samsung Electronics. EUV photoresist may be shipped to Samsung Electronics' EUV process Hwaseong plant, and etching gas will be shipped to China's Xi'an plant.

Only one month after the export restriction measures were implemented, there were many speculations in South Korea about Japan's move. Professor Park Jaegeun of Hanyang University believes that after South Korea accelerated its localization, it has affected Japanese companies. Although 90% of EUV photoresists are produced in Japan, 30-40% are basically consumed in South Korea. The Japanese government chose this move to protect local companies. Professor Jung Ingyo of the School of International Commerce at INHA University believes that Japan's adjustment of the plan is to pressure South Korea to renegotiate forced labor. Rather than responding to South Korea's localization, it should be said that Japan's intention is to strengthen its status.

There are also many opinions in South Korea that Japan's measures will continue until the end of the year. Industry insiders believe that if it is really a concession, it will definitely be the removal of the whitelist.

Although there are different opinions on Japan's move, most people believe that we should continue to pay attention to the development of the situation. People related to equipment believe that it is difficult to judge the future direction based on a single measure. If we forget about localization because of Japan's concessions, we will face the same crisis in the future.

The South Korean government still insists on localization measures despite Japan's concessions. Prime Minister Lee Nakyeon said at the national situation assessment and adjustment meeting that day: Japan has approved the export of EUV photoresist, one of the export restriction categories, for the first time, and the government will continue to work hard to restore Japan's economic attack to its original state.

The South Korean government also took this opportunity to slow down and observe the development of the situation. Government officials commented on the export license this time: They believe that Japan saw that South Korea accelerated its preparations for WTO litigation and approved export licenses as a countermeasure. It was mainly for the reputation of "not economic retaliation."

The Ministry of Trade, Industry and Energy retained the revised plan for the "strategic materials export declaration" that would put Japan on the whitelist on the same day. The Ministry of Industry held a discussion meeting on the revised plan for strategic materials export declaration on August 8, but ultimately believed that the details and timing of implementation still needed to be adjusted, and stated that the final release plan and timing would be decided later.

Some commentators also believe that as the relationship between the two countries has entered a period of relaxation, South Korea should be cautious in removing Japan from the whitelist. Lee Hyoyeong, a professor at the Department of Economics and Trade at the National Diplomatic Academy, believes that South Korea's removal of Japan from the whitelist is equivalent to a counterattack. If it is really implemented, it will affect international public opinion. The removal of Japan from the whitelist needs to be carefully considered.