BEIJING -During the Asia-Pacific Economic Cooperation (APEC) conference in Detroit, China's commerce minister, Wang Wentao, held a meeting with South Korean Trade Minister Ahn Duk-geun. In the discussion, they agreed to enhance dialogue and collaboration regarding semiconductor industry supply chains, addressing concerns about chip supplies, sanctions, and national security. The Chinese Ministry of Commerce stated that the ministers discussed the importance of maintaining the stability of the industrial supply chain and strengthening cooperation at bilateral, regional, and multilateral levels.
In addition to the commitment to strengthen trade ties and investment cooperation, China's commerce minister, Wang Wentao, expressed the country's willingness to collaborate with South Korea. However, the South Korean statement regarding the meeting did not specifically mention chips. Instead, it focused on requesting China to ensure a stable supply of essential raw materials and create a predictable business environment for South Korean companies operating in China.
According to a source familiar with the matter who spoke to Reuters, the South Korean side emphasized the need for communication between working-level officials across all industries, not solely limited to semiconductors. The source, who preferred to remain anonymous due to lack of authorization to speak to the media, highlighted that South Korea finds itself caught in the middle of the ongoing semiconductor dispute between the United States and China.
Last week, China's cyberspace regulator declared that Micron, a semiconductor company, did not pass its network security evaluation. Consequently, the regulator announced its intention to prohibit operators of critical infrastructure from purchasing products from Micron. The United States has been advocating for countries to restrict China's access to advanced chips, citing various concerns related to national security.
According to data from the South Korean trade ministry, approximately 40% of South Korea's chip exports are destined for China. Additionally, South Korean chip manufacturers, such as Samsung Electronics and SK Hynix, rely on U.S. technology and equipment for their operations.