Meeting with Chinese ambassador Yang Hyang-ja to eliminate external interference and strengthen semiconductor cooperation with South Korea… chip 4 check

Chinese Ambassador to Korea Xing Hai-ming Meets Chairman Yang Hyang-ja
“Let’s eliminate interference and strengthen Korea-China semiconductor cooperation”

Meeting with Rep. Yang Hyang-ja (right), Chinese Ambassador to Korea Xing Haiming [사진=주한중국대사관 위챗 계정]

China’s ambassador to Korea, Xing Haiming, followed up with key figures related to semiconductors from the South Korean ruling party and government while the US strongly requested South Korea to participate in the so-called ‘Chip 4’ (USA, Korea, Taiwan, and Japan) in order to isolate China. They made contact and started counterattacking in earnest.

On the 26th, according to the official account of the Chinese Embassy in Korea WeChat (Chinese version of KakaoTalk), Ambassador Xing met with Rep. Yang Hyang-Ja (independent) who is the chairman of the Special Committee for Strengthening the Competitiveness of the Semiconductor Industry, the People’s Power, the day before. discussed cooperation.

“China wants to cooperate with South Korea in adhering to the principle of fair and fair market, excluding external interference, strengthening cooperation in semiconductors and other fields, and safeguarding the stability of global industrial and supply chains,” he said. said

On the same day, Ambassador Singh exchanged views on ways to deepen economic and trade relations between the two countries and practical cooperation plans during a meeting with Deok-geun Ahn, head of the Ministry of Trade, Industry and Energy’s trade negotiations headquarters.

Ahn Deok-geun, head of trade negotiations at the Ministry of Trade, Industry and Energy (first from the right) is discussing ways to expand trade cooperation between the two countries with Chinese Ambassador to Korea Xing Haiming at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 25th. 2022.7.25 [사진=산업통상자원부]

He said that he would like to make more positive contributions to bilateral relations and economic development by further strengthening coordination and cooperation in the economic and trade fields between Korea and China taking the 30th anniversary of the establishment of diplomatic ties between Korea and China as an opportunity this year. The Chinese side said that in the future, it will provide more new opportunities for foreign companies, including Korean ones.

It is known that the US government recently requested the Korean government to decide whether to participate in ‘Chip 4’ by the end of next month. The United States first proposed Chip 4 in March, in which Korea, Japan, and Taiwan participate in the formation of a semiconductor supply chain. The intention is to gather advanced semiconductor countries to contain China and isolate it from the semiconductor market.

China’s backlash is fierce. Although China’s semiconductor self-sufficiency rate rose from 12.7% in 2011 to 16.1% in 2021, the proportion of Chinese companies was only 6.6% last year. China’s declared ‘70% semiconductor self-sufficiency rate by 2025’ is predicted to be virtually impossible.

The Chinese government is putting pressure on South Korea’s move to join the Chip4 Alliance, raising the level of containment. Chinese Foreign Ministry spokeswoman Zhao Lijian said, “The United States is abusing its national capabilities while advocating the principle of free trade, politicizing, instrumentalizing, weaponizing science and technology and economic and trade issues, and engaging in intimidating diplomacy.” did.

Samsung Electronics Vice Chairman Lee Jae-yong greets President Yoon Seok-yeol and US President Joe Biden at the Samsung Electronics Semiconductor Factory in Pyeongtaek, Gyeonggi-do, on the 20th. [사진=대통령실사진기자단] 2022.5.20

Chinese state media also publish articles and editorials to check Korea’s participation in Chip 4 every day. The Global Times, the state media of the Communist Party of China, pointed out South Korea on the 21st and argued that “Korea’s joining the Chip4 Alliance is a commercial suicide.”

Joining the Chip 4 alliance is also a burden for the government and domestic companies. Of Korea’s $128 billion in semiconductor exports last year, exports to China amounted to $50.2 billion, accounting for 39%. If Hong Kong is included, the figure is 60%.

Especially

and have semiconductor plants in Xi’an and Wuxi, respectively, in China. Considering that it is an industry that is highly dependent on China, participation in the supply chain alliance excluding China is highly likely to have a big impact on the domestic semiconductor industry ecosystem.

On the other hand, there are many opinions that it is necessary to join the Chip4 Alliance to survive in the reorganization of the global semiconductor supply chain. Until now, except for Korea, there is no country that can substitute memory semiconductors, so it was possible to develop semiconductors while maintaining neutrality between the US and China.

By Kang Kyung-joo, reporter at Hankyung.com [e-mail]