{"id":2197964,"date":"2022-08-04T18:40:53","date_gmt":"2022-08-04T09:40:53","guid":{"rendered":"https:\/\/www.nknews.org\/pro\/?p=2197964"},"modified":"2023-04-05T16:11:47","modified_gmt":"2023-04-05T07:11:47","slug":"why-south-koreas-biggest-chipmakers-are-betting-big-on-us-over-china","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/08\/why-south-koreas-biggest-chipmakers-are-betting-big-on-us-over-china\/","title":{"rendered":"Why South Korea\u2019s biggest chipmakers are betting big on US over China"},"content":{"rendered":"
In a rare <\/span>video call<\/span><\/a> 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.<\/span><\/p>\n \u201cThis is the big deal,\u201d Biden said, praising Chey for helping create thousands of American jobs in <\/span>semiconductors, pharmaceuticals, electric cars and energy storage. SK follows competitor Samsung\u2019s <\/span>$17 billion investment<\/span><\/a> in Texas to build an advanced chip factory there.\u00a0<\/span><\/p>\n \u201cThese kinds of technology investments used to go to China,\u201d Biden added.<\/span><\/p>\n The string of investments were not just major economic gains for Americans but also a promising development for the Biden administration, which has asked Seoul to join its exclusive semiconductor coalition with Japan and Taiwan to form the so-called Chip 4 alliance.\u00a0<\/span><\/p>\n While the South Korean government has largely embraced the idea, it has been mindful of the reaction in Beijing, which the Washington-led initiative is designed to isolate. China is South Korea\u2019s biggest export market and production hub, where over 40% of Samsung and SK\u2019s chips are made.\u00a0<\/span><\/p>\n Amid reports that the U.S. requested Seoul decide on joining Chip 4 by the end of August, foreign minister Park Jin <\/span>denied<\/span><\/a> there was a deadline on Monday, and insisted the network is not designed to counter China, while ICT minister Lee Jong-ho said Seoul will <\/span>weigh the cost and benefits<\/span><\/a> of membership.<\/span><\/p>\n But South Korea\u2019s largest chipmakers appear to have already decided that the U.S. is the future with long-term, multibillion-dollar deals.\u00a0<\/span><\/p>\n \u201cThey started to recognize that it is more crucial to join the U.S.-led global chip production chain, even though they lose some Chinese clients in the long run,\u201d Kim Sei-wan, professor of economics at Ewha Womans University, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n With further geopolitical and economic uncertainties ahead, South Korea\u2019s IT giants have already started to cut their losses in the Chinese market, while signing onto Washington\u2019s <\/span>\u201cfriend-shoring\u201d policy<\/span><\/a>.<\/span><\/p>\n