1. South Korea and the Netherlands jointly announced the formation of the "Semiconductor Alliance", mainly to cater to the current fierce strategic competition between China and the United States. South Korea has always been a semiconductor manufacturing powerhouse, while the Netherlands is a semiconductor equipment powerhouse, and after forming an alliance, the two countries will complement each other's advantages and jointly develop the semiconductor industry chain. This is especially important for South Korea, as the recent announcement of a partnership between Japan and the United States to build a 2-nanometer chip manufacturing base by 2025 is a heavy blow to South Korea. South Korea's semiconductor sales have surpassed that of the United States, which worries the United States and does not want South Korea to develop further. Therefore, South Korea urgently needs to reach a cooperation with the Netherlands in order to gain more advantages and change the current difficult situation.
The Dutch company "ASML" is the world's leading semiconductor equipment manufacturer and is known as "the world's second party". The cooperation with South Korea will provide great benefits to Korean semiconductor companies. The production of cutting-edge chips is inseparable from ASML's equipment, so the cooperation gives South Korea the right of first refusal to purchase equipment. In addition, ASML will train a large number of talents in the semiconductor industry from 2024 to 2028, which will further strengthen South Korea's competitiveness in the semiconductor field.
It is worth noting, however, that Dutch cooperation is not just for economic purposes, but also for political reasons. Yoon Suk-yeol hopes to show favor to Western countries and seek broader international support, especially in relations with China. But this policy has also brought some negative consequences. First of all, the U.S. restrictive policy on China has put a lot of pressure on South Korean semiconductor companies. The U.S. has restricted semiconductor exports to China, which has directly affected South Korea's semiconductor industry. Second, China's own semiconductor technology continues to develop, and its dependence on South Korea's market share is gradually decreasing. Therefore, although South Korea hopes to alleviate its ** problem with the United States with the help of cooperation with the Netherlands, it will also face more economic challenges.
The relationship between South Korea and China has always been very important, China is South Korea's largest partner and used to be the largest surplus country. However, in recent years, South Korea's exports to China have changed, and Yoon Suk-yeol has adopted a policy of "distancing China", which has led to a decline in sentiment between China and South Korea, which has affected the sales of South Korean goods to China.
According to relevant statistics, in the first 10 months of 2023, South Korea's semiconductor exports to China will be about 6900 million US dollars, a decrease of 38 percent from last year9%。This has led to a deficit between China and South Korea, with South Korea importing $132 billion from China and exporting only $114 billion, a deficit of $18 billion. This change is not only due to Yoon Suk-yeol**'s cooperation with the restrictive policies of the United States, but also because of the continuous development of China's semiconductor technology, which is gradually reducing its dependence on South Korean semiconductors.
China's semiconductor industry is developing rapidly and has become one of the world's largest semiconductor consumer markets. China** has adopted a series of policies to support the development of local semiconductor companies and encourage independent R&D and innovation. As a result, China's market share in the semiconductor field is increasing, gradually matching or even surpassing South Korea. China has used its own strength to tell the world that China's development cannot be limited.
In the context of the Sino-US war, the U.S. semiconductor sanctions and restrictions on China have also had an impact on South Korea's semiconductor industry. The U.S. restrictions on the export of related technologies have affected South Korea's equipment, raw materials and exports, which has exacerbated the plight of South Korea's semiconductors.
As a semiconductor manufacturing powerhouse, South Korea is facing the impact of increased competition in the semiconductor industry and changes in the global market. Yoon Suk-yeol hopes to make up for the problems with the United States through cooperation with the Netherlands and gain more technological and market advantages. However, it remains to be seen whether this model of relying solely on external cooperation will lead to real development.
In the technological competition in the semiconductor industry, South Korea faces challenges from many competitors such as the United States, Japan, and China. Especially in the field of 2nm chip manufacturing technology, South Korea will compete more fiercely with companies such as TSMC. Only with core competitiveness in technological innovation and independent research and development can we be invincible in the global semiconductor market.
In addition, South Korea should review its relationship with China. China is South Korea's largest partner, China's semiconductor market has huge potential, and China's semiconductor technology is also developing. Therefore, it is crucial for the Korean semiconductor industry to maintain a good relationship with China and actively carry out technical cooperation.
To sum up, South Korea and the Netherlands have formed a "semiconductor alliance" to cater to the current strategic competition environment between China and the United States and seek technological and market advantages. However, South Korea's semiconductor industry still faces many challenges, including restrictions from the United States and the rise of China's semiconductor industry. South Korea needs to enhance its competitiveness through technological innovation and independent R&D, and review its relationship with China to achieve sustainable development of the semiconductor industry.