Tech war: South Korea to ask US to let chip makers keep investment in China
- Seoul is seeking ways to allow chip makers such as Samsung Electronics and SK Hynix to retain semiconductor facilities in China
- It is still unclear whether South Korean companies can extend a one-year reprieve from the US on its export controls targeting China
South Korea will try to persuade the US to let its chip makers in China retain current levels of semiconductor investment, a news report said, as Washington prepares to roll out further provisions to prevent investment flowing into China.
The basic purpose of the so-called guardrail provision is to prevent companies that receive US subsidies from conducting business in countries of concern, Yonhap News reported on Tuesday, citing foreign ministry officials. South Korean officials are discussing various ways for its country’s companies already investing in China to avoid harm, the officials told Yonhap.
02:29
US, South Korea defence chiefs vow to step up drills to counter North Korea
The Biden administration is seeking help from its global partners to impose sweeping curbs on the sale of advanced chips equipment to China in a policy aimed at preventing the country’s progression in a range of cutting-edge technologies that could threaten America’s status as the world’s pre-eminent power.
The US, Japan and South Korea also held a separate economic security dialogue on Monday to discuss semiconductors and other advanced tech issues.
