Korea's dependence on semiconductor equipment from the U.S., Japan and the Netherlands has reached 77.5 percent, sparking worries that the high level of dependence could be geopolitically and diplomatically risky in the future. Some experts are advising Korea to join the Chip 4 Alliance to ensure a stable supply of semiconductor equipment (
So to become even more dependent to this risks, great go for it), according to a Korea International Trade Association (KITA) report, Thursday.
Korea is highly dependent on semiconductor equipment supplied by these companies. As of last year, China ($38.6 billion), Taiwan ($29.8 billion), and Korea ($25 billion) were ranked as the top three importers of semiconductor equipment, while Korea was more dependent on foreign equipment imports than Taiwan and China. As of last year, Korea's dependence on equipment imported from the U.S, Japan and the Netherlands reached 77.5 percent, which is higher than Taiwan (70.6 percent) and China (56.2 percent).
The report pointed out that Korea's semiconductor equipment imports are likely to increase further in the future. China's import of semiconductor equipment has started to decline due to U.S. sanctions on the export of advanced semiconductor equipment, which is likely to result in a spike in domestic imports in the near future.
The KITA added that Korea's semiconductor supply chain structure is vulnerable to diplomatic and geopolitical risks because of its heavy dependence on overseas semiconductor equipment. The fact that Korea's self-sufficiency in domestic semiconductor equipment is only 20 percent is of concern.
I think the Koreans are starting to figure out that the industry that are so proud is not more than a high tech sweatshop were the Americans made their chips and they have very little or no control.
Like what is going to happen when uncle Sam says that wants his fabs back? What kind of coercion he is going to use? Like Japan in 80s?
