Washington says proposed chip alliance to reduce dependence on China
South Korea on Wednesday said it would not take any decision in a hurry to join the proposed US-led chip alliance, local media said.
The country’s Science and ICT Minister Lee Jong-ho said Seoul should be cautious about joining the chip alliance proposed by the US to Japan, South Korea, and Taiwan, Yonhap News Agency reported.
His remarks came after the US reportedly asked Seoul to decide by the end of August whether it is joining them or not.
Apparently, South Korea is avoiding going into conflict with China as the US also involved Taiwan in its proposed chip alliance.
“I believe we need to be cautious in deciding on the chip alliance matter,” the agency quoted Lee as telling reporters in Seoul.
“If a problem arises (from the decision), it could affect not only the semiconductor industry but also affect other industries,” Lee said, adding he sought suggestions from people who do business with China.
China currently supplies raw materials to the South Korean chip industry.
However, on Tuesday, US Treasury Secretary Janet Yellen said the proposed alliance would help build more stable supply chains and reduce dependence on China, according to the agency.
The US proposed the alliance in March to chip manufacturing powerhouses in the Asia-Pacific region – South Korea, Japan, and Taiwan – to strengthen cooperation throughout the chip-making production chain.