Why South Korea’s biggest chipmakers are betting big on US over China



Analysis Why South Korea’s biggest chipmakers are betting big on US over China Samsung and SK Hynix appear on board with US vision for semiconductor alliance with advanced East Asian economies Sooyoung OhAugust 4, 2022 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON Computer circuit board, Feb. 2020 \| Image: Jeremy Waterhouse via Pexels In a rare video call last week between U.S. President Joe Biden and SK Hynix chief Chey Tae-won, the South Korean business mogul pledged some $22 billion to expand high-tech investment in the U.S. “This is the big deal,” Biden said, praising Chey for helping create thousands of American jobs in semiconductors, pharmaceuticals, electric cars and energy storage. SK follows competitor Samsung’s $17 billion investment in Texas to build an advanced chip factory there. “These kinds of technology investments used to go to China,” Biden added. The string of investments were not just major economic gains for Americans but also © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01South Korea’s CPTPP push exposes the cost of turning trade gains into consensus 02AI storage boom gives South Korea battery makers an EV overcapacity lifeline 03South Korea’s Mexico strategy runs into the hard limits of USMCA politics 04Preschool test ban forces South Korea’s English hagwons to rethink placement 05Lee Jae Myung’s Wall Street pitch tests South Korea’s capital market credibility 06US midterm clock raises stakes for South Korea’s $200 billion investment talks 07Lee’s Hormuz red line tests South Korea’s leverage in $350 billion US talks 08South Korea’s AI data center boom is colliding with the true cost of power

Analysis

Why South Korea’s biggest chipmakers are betting big on US over China

Samsung and SK Hynix appear on board with US vision for semiconductor alliance with advanced East Asian economies

Sooyoung OhAugust 4, 2022

Why South Korea’s biggest chipmakers are betting big on US over China

Computer circuit board, Feb. 2020 | Image: Jeremy Waterhouse via Pexels

In a rare video call last week between U.S. President Joe Biden and SK Hynix chief Chey Tae-won, the South Korean business mogul pledged some $22 billion to expand high-tech investment in the U.S.

“This is the big deal,” Biden said, praising Chey for helping create thousands of American jobs in semiconductors, pharmaceuticals, electric cars and energy storage. SK follows competitor Samsung’s $17 billion investment in Texas to build an advanced chip factory there.

“These kinds of technology investments used to go to China,” Biden added.

The string of investments were not just major economic gains for Americans but also

LATEST ANALYSIS

01South Korea’s CPTPP push exposes the cost of turning trade gains into consensus
02AI storage boom gives South Korea battery makers an EV overcapacity lifeline
03South Korea’s Mexico strategy runs into the hard limits of USMCA politics
04Preschool test ban forces South Korea’s English hagwons to rethink placement
05Lee Jae Myung’s Wall Street pitch tests South Korea’s capital market credibility
06US midterm clock raises stakes for South Korea’s $200 billion investment talks
07Lee’s Hormuz red line tests South Korea’s leverage in $350 billion US talks
08South Korea’s AI data center boom is colliding with the true cost of power

Why South Korea’s biggest chipmakers are betting big on US over China

LATEST ANALYSIS

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Sooyoung Oh