Around semiconductors and core mineral chains, the contradictions between the United States and China are intensifying.
The United States has restricted the export of the latest cutting-edge semiconductors to China since October last year, and said on the 21st local time that it would restrict China's production of low-cost general-purpose semiconductors, and China also said "-for-tat" that it would ban the export of rare earth processing technology, a strategic material
South Korean semiconductor companies that have entered both the U.S. and China will not be able to avoid the ensuing storm no matter how they do.
The United States** decided to investigate how many low-cost general-purpose semiconductors made in China are imported and used by its own companies.
After cutting off exports to China of cutting-edge semiconductors such as artificial intelligence semiconductors, which use U.S. technology and equipment, the U.S. is trying to thwart China's "semiconductor rise" by controlling the import of Chinese-made semiconductors, which is launching a low-price and volume offensive.
The U.S. Department of Commerce plans to grasp the supply and demand of general-purpose semiconductors for more than 100 domestic companies in the automotive, aerospace, and defense industries in January next year.
The U.S. Department of Commerce said the reason for the investigation was to strengthen the U.S. semiconductor chain while reducing the risk it caused.
It makes it clear that the target is Chinese-made semiconductors.
Biden said that U.S. sanctions on general semiconductors "may include tariffs or other means."
According to the analysis, this means that the United States will significantly increase tariffs on Chinese-made general-purpose semiconductors imported by American companies to reduce dependence on China.
It has been pointed out that in fact, the United States has joined South Korea, Taiwan, Japan, the Netherlands, and others in blocking the export of cutting-edge semiconductor technology and equipment, but China has not been hit as hard as expected.
Chinese semiconductor companies that have received huge subsidies are actively attacking the general-purpose semiconductor market above 20 nanometers, which accounts for 75% of the world's semiconductor market with old equipment and technology.
There are even people who believe that if the current trend continues, half of the world's old semiconductor market will be occupied by Chinese products in two or three years.
U.S. Commerce Secretary Gina Raimondo said that "the results of the investigation will provide the intelligence we need to take the next step," which is a particular part of the interest for South Korea** and businesses.
Because it means that the import of Chinese-made semiconductors can be prevented by raising ** barriers through high tariffs and other high-quality barriers.
The problem is that the United States, which has been emphasizing cooperation with its allies, is likely to ask South Korea and others to participate in the future.
Although South Korea is the world's largest memory semiconductor, it is highly dependent on Chinese products for low-cost general-purpose semiconductors.
If Chinese semiconductors cannot be used, the competitiveness of home appliances, smartphones, and automobiles produced in South Korea will be problematic.
If high tariffs are imposed on Chinese-made semiconductors, Samsung Electronics and SK hynix will also suffer losses in semiconductors manufactured in China.
In September last year, the U.S.** passed the Inflation Reduction Act, deciding to pay subsidies only for electric vehicles produced in the U.S., and the South Korean auto industry suffered unexpected losses as a result.
With regard to this measure, if we do not formulate a sophisticated diplomatic strategy that reads the US side's intentions into two or three hands, this kind of thing may repeat itself at any time.