US: "Korea, Do Not Fill China's Semiconductor Shortage"

Ahead of President Yoon's US Visit Request
Korea Faces Complex Calculations in Sensitive Times

On the 24th, ahead of President Yoon Suk-yeol's state visit to the United States, the White House reportedly requested that South Korean companies such as Samsung Electronics and SK Hynix refrain from filling the market gap that could arise if the Chinese government bans semiconductor imports from the U.S. company Micron. This is expected to complicate President Yoon's calculations during his first state visit in 12 years.

US: "Korean Companies Should Not Fill China's Semiconductor Shortage"

According to major foreign media on the 23rd (local time), the Biden administration recently conveyed this stance to South Korea during discussions about President Yoon's state visit. Multiple sources reported, "If Micron's exports to China are banned, the U.S. requested the South Korean government to restrain Samsung Electronics and SK Hynix from increasing their sales volume to China."

Earlier, the Chinese government launched an investigation into Micron, the largest U.S. memory semiconductor company, citing concerns that it could threaten China's security. If Micron is found guilty, it could face hefty fines and import bans. Last year, the Chinese region, including Hong Kong, accounted for 25% of Micron's sales.

In the U.S., the dominant analysis is that this is retaliation against the Biden administration's earlier advanced semiconductor export restrictions on China. Industry insiders speculate that during the process of pursuing retaliatory measures, the Chinese government may have judged that Samsung Electronics and SK Hynix could sufficiently replace Micron's supply volume.

The White House's recent request appears to have come in this context. Earlier, the U.S. securities firm Bernstein assessed that Samsung Electronics and SK Hynix could actually benefit by securing Micron's supply volume within China.

[Image source=Yonhap News]

Foreign Media Also Focus on "Sensitive Timing Ahead of Yoon's State Visit to the US"

The White House's request has reportedly put the Yoon Suk-yeol administration in a difficult position. In South Korea, concerns are mounting that the U.S.-China semiconductor conflict could weaken the long-term competitiveness of Korean semiconductors.

Major foreign media especially noted that the White House's request came at a sensitive time just before President Yoon's major schedule of a state visit to the U.S. According to the South Korean presidential office, President Yoon and First Lady Kim Keon-hee will depart on the 24th for a 5-night, 7-day state visit to the U.S. The visit aims to strengthen extended deterrence in the 70th anniversary of the Korea-U.S. alliance and to concretize economic security cooperation.

Leading with an alliance-centered "friend-shoring" strategy that openly excludes China, the U.S. reportedly emphasized alliance during the process of delivering semiconductor-related requests to the South Korean government. While the U.S. has repeatedly requested cooperation from allied countries to counter China's growing hegemony ambitions in the Indo-Pacific region, this is the first time it has asked companies within those countries to play such a role citing alliance reasons. Both Samsung Electronics and SK Hynix operate sizable production plants in China, so significant repercussions are expected.

Micron declined to comment on the report. The White House stated that ahead of President Yoon's state visit, the two countries have made historic progress in strengthening cooperation on national and economic security issues, including efforts to protect advanced technologies. The White House National Security Council (NSC) said, "This includes efforts to coordinate investments in the semiconductor sector, secure core technologies, and address economic pressures," and expressed expectations that "cooperation will be strengthened in all aspects through this state visit."

During President Yoon's visit to the U.S., it is expected that, beyond the White House's request, broad discussions will take place on cooperation in advanced technologies such as semiconductors and economic security.

In particular, attention is focused on whether alternatives can be discussed and derived during the summit to address the U.S. CHIPS and Science Act (CSA), which restricts technology upgrades at South Korean companies' factories in China, including Samsung Electronics and SK Hynix. It is also reported that there are ongoing discussions about formalizing practical measures to strengthen the nuclear umbrella in a separate special document. One foreign media outlet cited U.S. officials saying that the U.S. side will pledge sufficient measures regarding extended deterrence at the Korea-U.S. summit.

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