Executive order to review semiconductor battery rare earth medical supplies supply chain
“This chip reduces working hours”
Korean companies worry about the US and China market
[아시아경제 뉴욕=백종민 특파원, 김흥순 기자] “This is a semiconductor. This chip, which is hard to see, has delayed production of cars and reduced working hours for Americans.”
On the 24th (local time), President Joe Biden stood on the platform and showed reporters directly to reporters before signing an executive order to inspect the supply chain for semiconductors, batteries, rare earths, and medical supplies for the next 100 days at the White House. This was to emphasize the importance of semiconductors and the need for semiconductor production in the United States.
◇Semiconductor industry support bill is also promoted= Semiconductors were particularly emphasized in the executive order on the day that the main content was to review the supply chain of four major items. Recently, the automobile production line was stopped due to a shortage of semiconductors. President Biden stressed, “The executive order does not immediately solve the shortage of semiconductors, but it must solve the supply problem to avoid future crises.”
He also mentioned, “We are working hard to solve the bottleneck by consulting with semiconductor companies of alliance countries.” President Biden stressed, “You shouldn’t respond after the supply chain has been shut down. We must stop the supply chain crisis in the first place.”
On this day, the US government and Congress decided to provide funding to support the semiconductor industry. President Biden also revealed that he had promised bipartisan cooperation by meeting with about 10 opposition lawmakers at the White House before signing the executive order. Senate leader Chuck Schumer also announced that he would push for a bill to fund the semiconductor industry. Chairman Schumer, a district in New York State, had hoped for Samsung Electronics to invest in New York State.
The US media evaluated the move as an intention to expand the semiconductor production base in the US. President Biden also stressed that “as in the 1960s, we should do research and development (R&D) to establish a production base.” The 1960s marks the birth of the world’s first semiconductor industry in the United States.
◇A Korean company that deepens trouble… What are the gains and losses of interest? = As the Biden administration ordered a review of the supply chain of major items that have exposed problems in the supply and demand structure, domestic related companies are also in a situation where they must carefully weigh the gains and losses. In particular, semiconductor companies whose exports account for 95% are sensitive. This is because the relationship with China, which accounts for about 40% of the export amount, cannot be ignored.
According to the Korea International Trade Association, between January last year and the last year, Korea’s semiconductor exports amounted to about 107.9 billion dollars (about 119 trillion won), of which China recorded about 43.3 billion dollars (about 48 trillion won). It is known that China accounts for half of the semiconductor exports of major domestic companies such as Samsung Electronics and SK Hynix.
An official in the semiconductor industry said, “China is a market that cannot be discarded by domestic semiconductor companies because IT companies are in a state of rapid growth and have a large influence on the global economy.” You can be in a difficult situation where you can’t do this or that.” He added, “While expanding investment and exchanges in the US, we will have to do well in tug of war so as not to miss the Chinese market.”
New York = correspondent Baek Jong-min [email protected]
Reporter Kim Heung-soon [email protected]