▲ AI PRISM* Customized Economic Briefing
*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an "artificial intelligence (AI)-based customized news recommendation and summarization service" developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.
[Key Issue Briefing]
■ China Bans Helium Exports: China has abruptly banned exports of helium, a key cooling material in semiconductor and display manufacturing processes, introducing a new variable into the global chip supply chain. Following rare earths, and then gallium, germanium and graphite, China has now expanded its scope of strategic-material controls to include helium. The industry estimates that China's helium import dependence stands at approximately 90%.
■ Japan Materials-Equipment ETFs Surge: Amid expanding semiconductor capital expenditure (CAPEX) driven by the global AI boom, Japanese semiconductor materials, parts and equipment (MPE) ETFs are standing out with one-year returns exceeding 100%. Japan holds the world's No. 1 position in the global semiconductor materials market (48%) and No. 2 in the equipment market (31%), and the Japanese government is pursuing a semiconductor industry development plan investing 10 trillion yen by 2030.
■ Taiwan Sets Export Record: With demand for AI chips and servers exploding, Taiwan's exports in the first half of this year set an all-time high with the strongest growth rate since 2010. As concerns over K-shaped polarization concentrated in AI-related items fade, the export recovery is spreading to traditional industrial items such as electrical machinery and machinery.
[News of Interest to Global Investors]
1. China Abruptly Bans Exports of Key Chip Material 'Helium'
- Key Summary: China's Ministry of Commerce and the General Administration of Customs have imposed an immediate ban on exports of helium, which is used as a coolant in semiconductor and display manufacturing processes. The two agencies said the measure was based on relevant regulations including China's Foreign Trade Law, but did not disclose specific background or the applicable period. As a result, China has expanded the scope of its strategic-material controls to include helium, following rare earths, graphite, gallium and germanium, and the industry estimates China's helium import dependence at approximately 90%. Meanwhile, with the conflict between the United States and Iran increasing uncertainty in the Middle East energy supply chain, concerns have been raised that global helium supply and demand could also be disrupted.
2. Focusing on Japanese Chip Materials-Equipment...Returns Jump 105% in One Year
- Key Summary: The 'PLUS Japan Semiconductor Materials-Equipment ETF' recorded a one-year return of 104.54% based on net asset value (NAV), continuing solid performance even during a period when major domestic semiconductor-related ETFs went through a correction phase. The ETF holds as major constituents Tokyo Electron, which commands more than 90% share of the photoresist processing equipment market, and Advantest, which holds a 61% share of the semiconductor test equipment market. According to the Korea Trade-Investment Promotion Agency (KOTRA), Japan ranks No. 1 in the world with a 48% share of the global semiconductor materials market and No. 2 with a 31% share of the equipment market. In addition, market research firm Gartner forecast that global semiconductor capital expenditure will increase 16.4% this year and rise a further 11.2% in 2027.
3. K-Shaped Growth Fades, Taiwan Breathes a Sigh of Relief
- Key Summary: Taiwan's exports in the first half of this year surged 47.1% year-on-year to $416.66 billion, setting a record high for the same period. By item, information and communication and audio-visual product exports soared 72.3% as shipments of graphics cards, servers and switches increased amid the spread of AI applications, while electronic component exports also rose 32.8%, reaching the second-highest level on a monthly basis. Along with this, traditional industrial items are also showing signs of recovery, with electrical machinery products rising 23% on expanded data center and power grid investment, and machinery increasing 14.8% on demand for semiconductor plant expansion. Tsai Mei-na, director-general of the statistics department at Taiwan's Ministry of Finance, said, "The AI craze is sweeping the world, and backed by Taiwan's manufacturing competitiveness, the tech industry is enjoying a new export boom."
- Key Summary: With the ruling Democratic Party of Korea signaling the possibility of easing the 52-hour workweek regulation for research and development (R&D) personnel within mega special zones, the business community has responded with welcome. Taiwan's TSMC launched the 'Nighthawk Project,' conducting semiconductor R&D in three 24-hour shifts, in 2014 when it faced pursuit from Samsung Electronics (005930.KS), and the United States and Japan each operate systems that permit overtime work for high-income professional workers. Meanwhile, some raised concerns that even if the regulatory exception within mega special zones is implemented, its effect could be halved unless living conditions such as housing, education and healthcare are in place. Kwak No-jung, CEO of SK hynix (000660.KS), said, "If an environment is created where quality education can be received without going to the metropolitan area, it will be a great help for early settlement."
▶Go to article: Retail Investors' Stocks Worth 140 Billion Won Forcibly Liquidated in a Single Day...Fallout From Extreme Volatility
▶Go to article: "Taxation Where There Is Income" Gains Momentum, But..."Volatility Will Rise" Concerns Also Emerge
