With South Korea, Japan and Taiwan
The U.S. government recently proposed a semiconductor industry alliance of the United States, South Korea, Japan and Taiwan. The purpose is to keep China in check as it is rapidly emerging in the industry.
The South Korean government’s current stance is that the proposal is not fully acceptable. This is because South Korean companies are running key facilities in China, which is the largest semiconductor market in the world. According to market research firms, China’s semiconductor consumption, US$299.1 billion a year, is about half of the global total.
The only overseas memory chip plant of Samsung Electronics is located in Xi’an. The NAND factory has a monthly capacity of 265,000 12-inch wafers, 42 percent of Samsung Electronics’ total NAND flash output.
SK Hynix is manufacturing DRAM chips in Wuxi, which account for 47 percent of the company’s total DRAM chip output. In addition, SK Hynix System IC is conducting foundry relocation in the city.
The two companies may have to face retaliation from China if the South Korean government accepts the idea. “Cooperation with the United States is the top priority of course, and yet the biggest market is also of paramount importance,” said an industry source.