China, South Korea agree to strengthen talks on chip industry


China and South Korea have agreed to strengthen dialogue and cooperation on semiconductor industry supply chains amid broader global concerns over chip supplies, sanctions and national security.

This is according to a statement by China's commerce minister.

Wang Wentao met with South Korean Trade Minister Ahn Duk-Geun on the sidelines of the Asia-Pacific Economic Cooperation (APEC) conference in Detroit, which ended on Friday.

They exchanged views on maintaining the stability of the industrial supply chain and strengthening cooperation in bilateral, regional and multilateral fields, according to a statement from the Chinese Ministry of Commerce on Saturday.

Wang also said China is willing to work with South Korea to deepen trade ties and investment cooperation.

However, a South Korean statement at the same meeting did not mention chips, instead saying the country's trade minister had asked China to stabilise the supply of key raw materials and asked for a predictable business environment for South Korean companies in China.

"The South Korean side expressed that communication is needed between working-level officials over all industries", not just for semiconductors, a source with knowledge of the matter told Reuters. The source declined to be identified because they were not authorised to speak to the media. South Korea is in the crosshairs of a tit-for-tat row between the United States and China over semiconductors.

China's cyberspace regulator said last week that Micron MU.O had failed its network security review and that it would block operators of key infrastructure from buying from the company. The US has pushed for countries to limit China's access to advanced chips, citing a host of reasons, including national security.

About 40 per cent of South Korea's chip exports go to China, according to trade ministry data, while US technology and equipment are necessary for South Korean chipmakers Samsung Electronics and SK Hynix.

More from Business

Coming Up on Dubai Eye

  • The Business Breakfast

    6:00am - 10:00am

    The Business Breakfast is the day’s must listen for the UAE’s business leaders, and those who aspire to be.

  • The Agenda

    10:00am - 1:00pm

    Broadcasting every weekday, Georgia Tolley goes beyond the headlines to speak to government ministers, decision makers, analysts and local experts to find out how the news will impact those of us living in the UAE.


On Dubai Eye

  • Flying Taxis

    It sounds like an episode of The Jetsons, but the sight of flying taxis whizzing around our cities could be much closer than you think.

  • Tough penalties for deliberate tax evasion

    The UAE has said that tougher penalties will come into force from 1st August for not keeping proper corporate tax records.