The government has stepped into securing the old semiconductor, but… I can’t see the pointed number

Visitors are looking at the exhibition at the 22nd Semiconductor Exhibition (SEDEX) held at COEX, Gangnam-gu, Seoul on October 27 last year. (Photo = Yonhap News)

[세종=이데일리 김상윤 기자] As the conditions for supplying semiconductors for vehicles were deteriorating, not only the industry but also the Ministry of Trade, Industry and Energy, the main ministry, fell on fire.

Concerns that it may disrupt the production of automobiles, the flagship export product, have prepared short- and short-term measures and mobilized diplomatic channels from various angles to secure an overseas supply chain. It is not easy to find a solution.

According to the government and the automobile industry on the 25th, the Ministry of Trade, Industry and Energy called the car and semiconductor industry practitioners on the 24th to discuss the issue of the shortage of semiconductor supply for vehicles. The’Future Vehicle-Semiconductor Solidarity Cooperation Council’, which was launched on the 4th, has been fully operational. In the future, the council will hold a meeting every week, centering on working-level workers.

In order to improve the short-term supply and demand conditions, the government is operating a 24-hour customs clearance support system, such as minimizing the procedure for submitting documents and screening for inspection of semiconductor import declarations for vehicles, and supports the rapid import of contracted goods. A customs administration system equivalent to the import and export of emergency supplies related to Corona 19 was applied. In addition, corona 19 quarantine exemption screening is being expedited when businessmen related to the procurement of automotive semiconductors leave or enter the country.

The government also requested cooperation from the Taiwanese government for smooth supply of automotive semiconductors. Since Taiwan TSMC accounts for 70% of the supply of microcontroller units (MCUs) in the global foundry (consignment production) market, it is seeking cooperation through diplomatic channels.

A government official said, “We are requesting cooperation with the Taiwanese government through local embassies, etc.,” and said, “It is a contract issue between private companies, so there is a limit, but we are putting in the maximum capacity to do it.”

Nevertheless, the disruption in supply and demand for automotive semiconductors is expected to continue until at least 3Q. The government also devised mid- and long-term countermeasures, as it could not be resolved in a short period of time. A budget of 204.7 billion won will be invested by 2022 for research and development of automotive semiconductors. In addition to simple semiconductors, it has expanded its support field by developing automotive application processors (AP), computing chips, and’Level 4’level autonomous vehicle components. In order to increase the speed of commercialization, it has decided to support the conversion of existing home appliance, industrial, and mobile semiconductors to vehicles.

An official from the Ministry of Industry said, “98% of automotive semiconductors are imported, and are highly dependent on overseas”.

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