S. Korea calls for all-out efforts to overcome challenges in chip industry

SEOUL, Oct. 24 (Yonhap) -- South Korea's industry ministry on Thursday vowed to make all-out efforts to overcome existing hurdles in the chip industry, which has been struggling with a cyclical downturn and sluggish global demand. "To cope with the quickly changing external environment, the government and private firms must join deeper ties" Industry Minister Sung Yun-mo said during an event held in Seoul to commemorate the annual semiconductor day. "To overcome the uncertainties stemming from the U.S.-China trade dispute, along with Japan's export curbs against South Korea, we need to focus on stabilizing the supply of related materials, parts and equipment," Sung added. In April, South Korea announced it will make a concerted effort to build up its non-memory chip industry in line with its goal of becoming a global semiconductor powerhouse by 2030. The ministry said it will continue to support local firms to meet the target. In September, South Korea's shipments of chips, the backbone of Asia's No. 4 economy, tumbled 31.5 percent on-year to US$8.5 billion. Chips accounted for nearly 20 percent of the country's overall exports. The continued slump came as global prices of DRAM dropped 50 percent on-year last month, while the U.S.-China dispute also weighed down global demand for chips, the ministry said. Starting in July, Japan also implemented export regulations on three industrial materials that are vital for the production of chips and displays against South Korea. Under the export curbs, Japanese firms shipping the three materials to South Korea must win approval for every shipment, which requires more time and complicated procedures. Thus, the policy has emerged as a major hurdle for South Korean tech giants, such as Samsung Electronics Co. colin@yna.co.kr (END)