South Korea says chip industry facing ‘all-out war’ amid US-China tensions

President Yoon Suk-yeol met with industry leaders and pledged to expand research and development to maintain South Korea’s lead in memory chips

South Korea, which exports 40 per cent of its chip production to China, has sought to avoid becoming embroiled in a row between Beijing and Washington over semiconductors

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South Korean President Yoon Suk-yeol. Photo: YNA/dpa

Published: 2:55pm, 8 Jun 2023

South Korea pledged support for its chip sector on Thursday, with President Yoon Suk-yeol describing competition in the industry as an “all-out war” amid heightened Sino-US tensions.

Earlier in the day, Yoon met with about 60 industry leaders, lawmakers and ministers to discuss how to maintain South Korea’s lead in memory chips, foster development of system semiconductors, and secure materials, equipment and labour.

“Geopolitical issues have become the biggest risk for companies to manage as of late. Companies alone cannot resolve this problem – it is one that the nation should tackle by strengthening cooperation with and closely communicating with like-minded countries like the United States,” Yoon told the meeting.

The government plans to help expand research and development, bolster smaller players, strengthen legal protection for chip technology and set up a chip testing facility, the industry ministry said in a statement.

South Korea has sought to avoid becoming embroiled in a tit-for-tat row between China and the US over semiconductors.