South Korea to avoid US-China rivalry, will not capitalise on Beijing’s chip maker ban
- South Korea won’t encourage its memory-chip firms to grab market share in China lost by a US chip maker barred by Beijing on national security grounds
- South Korea sees the move by Beijing as an attempt to drive a wedge between Seoul and Washington, according to a person familiar with the situation
South Korea will avoid capitalising on China’s ban on a US chip maker, seeing the move by Beijing as an attempt to drive a wedge between Seoul and Washington, according to a person familiar with the situation.
The South Korean government won’t encourage its memory-chip firms to grab market share in China lost by Micron Technology Inc., which has been barred for use in critical industries by Beijing on national security grounds, said the person, who asked not to be identified as the topic is politically sensitive.
China is the biggest market for South Korea semiconductor firms Samsung Electronics Co. and SK Hynix Inc. and home to some of their factories. Their continued operations in China are dependent on licenses granted by Washington, giving the US some leverage over Seoul’s decisions on how it balances its economic engagement with both countries.
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China imposes restrictions on US chip maker Micron, escalating tech war
South Korea is also wary of taking advantage of the Micron situation as it sees the US as a key long-term partner for its semiconductor industry and doesn’t want to disrupt that relationship, said the person.
China’s Micron decision has drawn South Korea into the US-China battle over technology access and national security. While Washington is Seoul’s top security partner, China is South Korea’s biggest trade partner.
Export Controls
Washington, along with allies in Japan and the Netherlands, has imposed a series of export controls on chipmaking equipment and know-how to Beijing as the world’s top two economic powers increasingly square off in trade and technology.