Group 1 - South Korea is a leader in storage products but heavily relies on Japan for key materials, posing structural risks in the AI and HBM competition [1] - SK Hynix's HBM value chain is dependent on critical materials and equipment monopolized by Japanese companies, including bottom fill materials supplied almost entirely by Japan's NAMICS [1][4] - Shin-Etsu Chemical controls about 30% of the global semiconductor wafer market, and combined with SUMCO, Japan's market share in this field is estimated to reach 70% [4] Group 2 - Japan remains the center of HBM production, with SK Hynix sourcing most of its photoresist from Tokyo Ohka Kogyo and relying on JSR and Asahi Kasei for essential packaging materials [4] - The slow progress in building a semiconductor materials supply chain in South Korea is attributed to Japanese companies having accumulated decades of data and customer trust [4] - Despite having companies like LG Chem and Lotte Chemical, South Korean firms are just beginning to enter the semiconductor materials sector [4] Group 3 - China is also striving to enhance self-sufficiency in semiconductor materials and chemicals [5] - HW is supporting Zhuhai Jishi Chemical to create a comprehensive supplier capable of competing with global leaders like Shin-Etsu Chemical and JSR [6] Group 4 - The equipment sector is another area where South Korea is heavily dependent on Japan [7] - Wafer thinning and cutting machines are predominantly dominated by Japan's DISCO, which holds over 90% of the global market share [8] - Some progress has been made in localization, with companies like Wonik IPS, PSK, and Hanmi Semiconductor providing critical equipment for SK Hynix's HBM production [8]