© Reuters. FILE PHOTO: An employee works in a clean room at the National Nanofab Center in Daejeon, South Korea, September 3, 2020. REUTERS/Kim Hong-ji
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SEOUL (Reuters) – South Korea pledged support for the chip sector on Thursday as President Yoon Sok Yul called competition in the industry an “all-out war” amid escalating tensions between the United States and China.
Earlier in the day, Yoon met with about 60 industry leaders, lawmakers and ministers to discuss how to maintain South Korea’s leadership in memory chips, promote the development of system semiconductors, and secure materials, equipment and labor.
“Geopolitical issues have become the biggest risk for companies to manage recently. Companies alone cannot solve this problem – it is a problem that the nation must address by strengthening cooperation and communicating closely with like-minded countries like the United States,” Yoon told the meeting.
The government plans to help expand research and development, support small businesses, strengthen legal protection for chip technology, and set up a chip test facility, the industry ministry said in a statement.
South Korea has sought to avoid getting involved in a tit-for-tat dispute between China and the United States over semiconductors.
On the other hand, chip makers Samsung Electronics (OTC:) and SK Hynix rely on American technology and equipment. At the same time, about 40% of South Korea’s chip exports go to China, according to data from the Ministry of Commerce.
When Washington announced restrictions on exports of chip-making tools to China last October, it issued a one-year waiver to Samsung (KS:) and SK Hynix, which has manufacturing facilities there, so they could import the tools without having to apply for a license. . It is not clear if this waiver will be extended.
