"Semiconductor Supply Chain to Shift from Efficiency Focus to Stability and Resilience"

[Asia Economy Reporter Jeong Hyunjin] As the United States and other major countries pursue semiconductor industry policies that emphasize the stability and resilience of semiconductor supply chains, there is a forecast that the existing semiconductor supply chain, which has been divided by process and region, could structurally change.

On the 31st, the Korea International Trade Association's Institute for International Trade and Commerce released a report titled "Major Countries' Semiconductor Industry Policies and Supply Chain Change Prospects," predicting that the future global semiconductor industry supply chain will show changes such as ▲a shift from an international division of labor system to a domestic division of labor system ▲intensification of US-China decoupling ▲and intensified competition in ultra-fine process technology.

(Data provided by Korea International Trade Association)

The KITA explained, "Although the semiconductor supply chain has undergone regional specialization and division of labor over the past several decades, recent disruptions occurred when bottlenecks in the supply chain arose due to COVID-19 and natural disasters, causing the entire supply chain to halt," adding, "In the changed domestic and international environment, countries are implementing industrial policies focused on protecting their domestic semiconductor industries and resilience against crises rather than on efficiency-based international division of labor systems."

In fact, in June, the White House released a supply chain review report on four major items including semiconductors, prioritizing the establishment of a semiconductor supply chain within the United States. The US Congress is also pushing a semiconductor manufacturing incentive bill worth $52 billion (approximately 60.6 trillion KRW). China is establishing support policies through large-scale national fund support aimed at semiconductor localization. Additionally, the European Union (EU), Taiwan, Japan, and others are also actively promoting policies to foster their domestic semiconductor industries.

KITA also identified the expansion of US-China semiconductor industry decoupling as a key change. Regarding recent US semiconductor sanctions against China and China’s countermeasures, KITA stated, "This affects third-country companies that utilize US-China technology or supply materials and equipment, potentially resulting in a bifurcation of the global semiconductor supply chain," and predicted, "Competition among countries to secure the design and manufacturing base of ultra-fine process semiconductors, which can be used in various advanced industries and have high added value, will become even fiercer."

Researcher Shin Kyuseop of the Korea International Trade Association said, "Major countries recognize semiconductors not simply as products but as critical security assets," adding, "For Korean semiconductor companies, which have overcome multiple crises and grown into global enterprises, close cooperation between companies and the government is necessary to maintain a competitive edge in the upcoming semiconductor wars."

This content was produced with the assistance of AI translation services.