[대만 총통선거 친미반중 승리]
Accumulated supply chain conflict with Chip 4, including Taiwan and Korea
“Korean companies may benefit from the Chinese market.”
There are concerns that the global semiconductor supply chain could become unstable if President-elect Lai Ching-de of the Democratic Progressive Party (DPP), who won Taiwan’s presidential election, takes a stand against China. In that case, it will be difficult for Korean semiconductor companies to avoid being hit.
On the 14th, the semiconductor industry believes that the supply chain conflict between the US-led semiconductor alliance ‘Chip 4’ (Korea, the US, Taiwan, and Japan) and China will further intensify as a result of the Taiwan presidential election. This is because the election was held as a proxy war between the United States and China, and President-elect Lai has strong pro-American tendencies. A government source said, “Considering that Taiwan’s main industry is semiconductor production, there is a possibility that China will apply extreme pressure to restrict exports of mineral resources, which are key raw materials for components such as semiconductors and batteries.” This pressure from the Chinese government is highly likely to affect not only Taiwan but also Korea. In fact, last year, China showed moves to control minerals used in semiconductors and batteries, such as gallium and graphite.
There is also an analysis that the increased geopolitical risk itself is a burden on the Korean semiconductor industry. An official from the semiconductor industry said, “As the semiconductor industry is greatly affected by the global economic cycle, the growing conflict between China and Taiwan and the decline in demand are a burden on the Korean semiconductor industry.”
The fact that the Taiwanese government’s support for Taiwan’s TSMC, which competes with Samsung Electronics in the semiconductor foundry (consignment production) market, will increase is also a negative factor for the Korean semiconductor industry. As Taiwan uses TSMC’s cutting-edge semiconductor factory as a ‘silicon shield’ to block threats from China, it is highly likely that it will further expand its support for TSMC as the China-Taiwan conflict grows. In fact, Candidate Lai said at a press conference immediately after being elected, “Taiwan’s semiconductor industry is a common asset for the world,” and “since the semiconductor industry is an industry where global division of labor takes place, not only Taiwan but also China and the international community should treat this industry with respect.” “He emphasized. This means sending a message to China and at the same time suggesting support for the country’s semiconductor ecosystem.
Some say that Korean companies may benefit as the influence of Taiwanese companies decreases in the Chinese market. However, Korean companies are not free from the conflict between the US and China, and Taiwanese companies’ small presence in the memory semiconductor market, which is the mainstay of Korean companies, is unlikely to have a significant positive impact on Korea. An executive at a semiconductor company said, “It is difficult to predict because the impact on Korea may vary depending on how the United States and China move in the future,” but added, “The Korean government and companies will have to assume the worst-case scenario and prepare in advance.” said.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.