Chinese state media asserted on November 5 that South Korean semiconductor companies should not acquiesce to U.S. demands at the expense of their global operations.
This commentary follows reports that U.S. authorities have delayed export approvals for American semiconductor manufacturing equipment necessary for SK Hynix's production expansion at its China facility.
Reuters reported on November 3 that the U.S. government has postponed the export license for semiconductor manufacturing equipment needed for SK Hynix's factory in China, complicating the company's plans to build a new semiconductor plant in New York state. SK Hynix had initially intended to increase production at its Dalian factory to fund its investments in the U.S.
In a commentary titled 'Reasons South Korean Semiconductor Firms Must Resist U.S. Pressure,' the Global Times criticized the U.S. for attempting to bolster its domestic semiconductor industry at the expense of South Korean companies' commercial interests.
The Global Times argued that this situation highlights the conflicting interests inherent in South Korea-U.S. semiconductor cooperation. While the U.S. seeks to attract investments and production facilities from South Korean firms, it simultaneously imposes export restrictions that limit their production expansion in China.
Furthermore, the commentary raised concerns that if South Korean companies expand their operations in the U.S. under such pressure, it could lead to a greater accumulation of investment, advanced production capabilities, and high-value jobs in the U.S. rather than in South Korea, questioning whether such 'cooperation' truly benefits both sides.
While the U.S. stands to gain from new investments and job creation, South Korean firms face restrictions on their global operations and risk transferring significant portions of their industrial capabilities overseas. The commentary argued that South Korea would bear a substantial share of the commercial and strategic costs in a structure that prioritizes U.S. industrial interests.
The Global Times also emphasized that Chinese factories are core production bases for South Korean semiconductor companies. In light of strong global demand and a worsening supply shortage for memory semiconductors, maintaining production capacity in China aligns with the commercial interests of South Korean firms. Additionally, a broad supplier network and manufacturing capabilities have long supported the global operations of South Korean semiconductor companies.
The commentary criticized the U.S. for prioritizing geopolitical goals over the commercial interests of South Korean firms, asserting that these companies should retain the flexibility to make investment and production decisions based on commercial judgment.
While acknowledging the rapid growth of China's semiconductor industry poses new competitive pressures for South Korean firms, it also emphasized that competition and cooperation can coexist in areas where the interests of companies from both countries align.
* This article has been translated by AI.
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