Tech war: US alliance with Japan, Netherlands to ban chip equipment exports to China may spur investment in South Korea
- As Japanese and Dutch chip equipment suppliers search for alternative markets outside China, South Korea is moving to attract investment
- Dutch semiconductor machinery maker ASML met South Korea’s foreign minister during his visit to the Netherlands to discuss potential collaborations
Agreement by the Netherlands and Japan to join the US in restricting chip-related exports to China could benefit South Korea, which could attract semiconductor equipment makers to invest in the country as an alternative production and distribution centre, experts said.
As companies search for alternative markets, South Korea – currently a key link in the global semiconductor value chain – stands to gain, according to Kim Dae-jong, a business professor at Sejong University in Seoul.
“[The US export controls] will widen again the technological gap between South Korea and China in the semiconductor sector, which has been narrowing,” Kim said. “South Korea can also receive more foreign investment and growth because of the controls.”
While Washington wants to enlist Seoul in its Chip 4 Alliance, an initiative with Tokyo and Taipei to limit China’s role in the chip supply chain, Beijing has repeatedly urged South Korea not to side with the US.