South Korea has recently joined the United States' initiative towards a coalition to center on creating chips to answer the shortage in the semiconductor industry, said recent reports. It centers on an internal confirmation regarding the Land of the Morning Calm's decision to join, said people familiar with the matter, also receiving no restrictions from the US regarding its export to China.
The country's leading chip exports center on providing the technology to China, a known US rival in chip manufacturing, which America is restricting on the tech.
South Korea is Now Part of the Chip 4 Alliance with US
(Photo : ANTHONY WALLACE/AFP via Getty Images)
The South China Morning Post reported that South Korea already decided to join the Chip 4 alliance with the United States, and this internal decision is only waiting for the right time to announce its offer. SCMP said that this report came from local Korean media, with the country on board this initiative from America towards creating more chips.
Additionally, insider reports further this information by saying that South Korea is now going to have to "balance" its relationship with both the United States and China, both known for their rivalry in the chip market.
It is known that South Korea's largest chip trading partner is China, with two massive Korean companies, Samsung and SK Hynix, both having plants in the Chinese region.
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US: No Restrictions for Korea's Chip Exports on China
The reports claim that the United States will not impose a restriction on South Korea to trade with China, nor be regulating its relationship with the country regarding semiconductors. However, according to Barron's, the United States "Anti-China" alliance towards creating more chips is moving towards reinforcing its semiconductor manufacturing and partnerships in the present.
US's Chip 4 and Answering the Current Shortage
The United States allied with three East Asian countries earlier this year, and it centered on more chip production that will help its countries, partners, and the world regarding its shortage. It also centers on countering China's significance in the chip industry, particularly with the booming business that the Chinese have now regarding semiconductors.
The alliance centers on the United States, Japan, South Korea, and Taiwan to deliver chip production to greater heights and center on more for the world.
The current chip industry in China is booming, and it is not bothered by the United States' restriction on them regarding getting its parts and stock from certain countries which America enforced on them. It seems like this restriction does not bother the Chinese chip industry the present, particularly as it develops its semiconductors in the present.
Chip 4 is the answer to the global supply chain problem that the chip industry is experiencing now, and despite many experts claiming that the shortage will soon be over, there are still hardships it will face. For now, South Korea is a massive ally in this fight to get more chips and produce them for the world, with no restrictions now regarding its trade with China.
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Written by Isaiah Richard
