In shortage of semiconductors… Eventually, the price of Chinese home appliances increased.

◆ The semiconductor turmoil ◆

Xiaomi, a large Chinese smartphone and home appliance manufacturer, announced on the 8th that it plans to increase the prices of’Xiaomi TV’ and’Redmi TV’ through its official Weibo. He explained that TV panel and semiconductor prices have fluctuated around the world and have adjusted retail prices. Another major Chinese home appliance company, Midi Group, also said, “Semiconductor supply is acting as a pressure on the home appliance industry,” suggesting that the global shortage of semiconductor supplies may boost home appliance prices.

After the shortage of semiconductors, the storm is spreading beyond automobiles and smartphones to the home appliance sector. Global automakers such as Volkswagen and GM began to cut production from the beginning of the year due to shortage of semiconductors, and smartphone makers such as Apple lowered production, followed by a shortage of semiconductor supply in China, which produces more than half of the world’s home appliances, pushing the price of finished products. Are uploading.

On the 9th, Hong Kong’s South China Morning Post (SCMP) quoted a statement released by China’s Midea Group the day before, saying, “Home appliances contain less sophisticated semiconductors than semiconductors used in smartphones and notebook computers, but as the supply of semiconductors increases, consumer electronics prices It is under pressure to raise,” he reported. Chinese home appliance makers, including Midy, produce two-thirds of the world’s air conditioners and TVs, and half of the world’s refrigerators and washing machines, respectively.

[노현 기자 / 이유진 기자]

The US and EU semiconductors are loosing tens of trillions of dollars… Korean government “special law is difficult”

Ministry of Industry·Semiconductor Emergency Meeting

Korean industry “hourly wage for special law enactment”
50% tax credit for R&D and facility investment
Request for cultivation of advanced manpower for masters and doctors

Government is struggling with legislation for specific industries
Industry “Semiconductor Situation Awareness”
Promote the US $20 Billion Support Act

Minister of Trade, Industry and Energy Sung Yun-mo urgently convened the Korea Semiconductor Industry Association (KSIA) presidential committee on the 9th. It is said that the meeting held at the Westin Chosun Hotel in Sogong-dong, Seoul from 8:00 am, was made urgently at the request of the Ministry of Industry. Samsung Electronics’ memory division head (president) and KSIA chairman Lee Jeong-bae, who leads the domestic semiconductor industry, SK Hynix CEO Lee Seok-hee, vice chairman of DB Hitech Choi Chang-sik, and Silicon Mitus chairman Heo Yeom, attended. The top officials in the semiconductor industry gathered together and requested that “the enactment of a special law for the semiconductor industry and a policy to foster unconventional manpower is urgent.”

However, the government expressed awkwardness. In the industry, a reaction came out asking, “If this is going to happen, what were you doing for the round-table conference?” It is pointed out that the Korean government’s perception is too easy compared to the United States and the European Union (EU), which are preparing various support measures to strengthen the semiconductor industry’s competitiveness.

Minister Seong said at a meeting, “The government is preparing a strategy for the’K-semiconductor belt’, which is a comprehensive semiconductor countermeasure at the government level, to prepare for the reproduction of this year’s supercycle and secure the leadership in semiconductor manufacturing.”

In the K-semiconductor belt strategy, investment in R&D to secure next-generation power and artificial intelligence (AI) semiconductor technology, along with infrastructure support such as electricity and water to expand private investment, expansion of investment tax credits, and regulatory rationalization, and training of human resources. It seems that a plan will be included.

Companies welcomed but explained that it is urgent to enact a special law on the semiconductor industry for more reliable industrial support. According to the’Semiconductor Industry Development Proposal’ delivered by the chairman on the day, the chairman said, “The US has established a strong incentive policy such as a 40% tax exemption for semiconductor facility investment, and China is pushing for an investment of 170 trillion won by 2025. The EU is also 67 trillion won. He said, “We are supporting the semiconductor manufacturing technology development project,” and requested “enactment of a special law to foster the semiconductor industry.” Specifically, the industry demanded that the tax credit be extended up to 50% for investment costs in R&D and production facilities for mass production, and various licenses and permits for semiconductor manufacturing facilities are quickly issued. It also requested public support for semiconductor infrastructure such as power and water supply and wastewater treatment facilities.

It is reported that the senior executives of the semiconductor industry gathered on this day also demanded from Minister Seong to prepare a groundbreaking policy to cultivate advanced semiconductor talent.

KSIA full-time vice chairman Lee Chang-han said, “We especially emphasized the unprecedented increase in the number of semiconductor-related departments in universities in the metropolitan area (where semiconductor factories are concentrated). “I have.”

In this regard, the industry requested the establishment of a’source technology development-type manpower training project’ and a’semiconductor manpower academy’ for master’s and doctoral talents.

The Ministry of Industry is planning to prepare a K-semiconductor belt policy by actively reflecting the requests of the industry in consultation with related ministries such as the Ministry of Strategy and Finance. However, the enactment of the special law for semiconductors is showing difficulties. An official from the Ministry of Industry explained, “In the case of a special law, there are parts that conflict with the existing industrial development law, and it is difficult to find a precedent for a bill that only benefits specific industries.” The official added, “Even if it is legislated, it is more effective to look for other measures such as the enforcement decree for prompt support, because the discussion process by the National Assembly is necessary.”

However, domestic companies argue that it is difficult to provide practical support from the government unless it is a special law with the status of the law. An industry insider said, “The domestic law on the semiconductor industry is difficult to prepare sub-laws such as the enforcement decree because the interests of various ministries are intertwined. The United States has already reached a bipartisan agreement with the politicians to specifically regulate subsidies and tax credits. I passed,” he explained.

In fact, the US Congress passed the CHIPS for America Act earlier this year. The law stipulates a range of incentives, including a $10 billion (approximately 11.2 trillion won) federal subsidy and up to 40% tax credit to encourage the establishment of semiconductor factories in the United States. The US Senate is currently debating an additional initiative of the American Foundries Act. The law raises federal subsidies for semiconductor manufacturing facilities to $15 billion and raises $5 billion in federal R&D grants to government agencies such as the US Department of Defense and the National Science Foundation.

[이종혁 기자 / 오찬종 기자]
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