Korea-US-Japan Semiconductor Alliance Blueprint Emerges [New Economic Security Map]

② US-Japan Joint Development of Next-Generation Semiconductors... Included in IPEF Core Agenda on Supply Chains
Traditional Semiconductor Powerhouses US and Japan Close Cooperation... Could Pose New Challenges for Korea

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The outline of semiconductor cooperation among South Korea, the United States, and Japan has been drawn following U.S. President Joe Biden's Asia tour and the launch of the Indo-Pacific Economic Framework (IPEF). As the U.S. efforts to contain China create a new structure in the semiconductor industry, which is central to economic security, the market landscape is being reshaped. This development is expected to present both new opportunities and challenges for South Korea's semiconductor industry.

According to Japan's Nihon Keizai Shimbun and others on the 24th, President Biden and Japanese Prime Minister Fumio Kishida declared in a joint statement after their summit in Tokyo the previous day that they "confirmed cooperation to protect and foster critical technologies such as semiconductors, support each other's competitive advantages, and strengthen supply chains." They also announced the establishment of a joint task force (TF) to review the development of next-generation semiconductors and agreed to pursue additional cooperation to enhance economic security. The TF will focus on developing advanced semiconductors with circuit widths smaller than 2 nm (1 nm is one-billionth of a meter). They also agreed to cooperate in responding to semiconductor production and supply shortages.

Earlier, in a joint statement on the 21st, the South Korea-U.S. leaders agreed to "strengthen public-private cooperation to protect and promote core and emerging technologies such as advanced semiconductors, eco-friendly electric vehicle batteries, and artificial intelligence (AI)" and decided to establish ministerial-level dialogues for key supply chains. President Biden also visited Samsung Electronics' semiconductor plant and emphasized the technology alliance.

As a result, an outline of the South Korea-U.S.-Japan semiconductor alliance centered on the United States has been drawn. Although multilateral cooperation was not explicitly mentioned, the bilateral cooperation centered on the U.S. effectively connects the three countries. Although semiconductors were not explicitly mentioned in the IPEF, which officially launched on the 23rd, advanced components such as semiconductors and batteries are expected to be comprehensively included under the core agenda of "supply chains."

Through the South Korea-U.S.-Japan semiconductor alliance, South Korea, which has strengths in semiconductor production facilities such as memory semiconductors and foundries, can establish a practical cooperation base with the U.S., which holds core semiconductor design technologies, and Japan, a leader in materials and components. With Taiwan excluded from IPEF, there is also hope that South Korea can fill that role in the foundry sector.

However, the close cooperation between the traditional semiconductor powerhouses, the U.S. and Japan, could pose new challenges for South Korea. Additionally, the fact that relations between South Korea and Japan have not fully recovered remains an issue to be resolved. President Biden emphasized South Korea-Japan cooperation several times during his Asia tour.