Chinese state media recently highlighted the business restructuring following Samsung Electronics' relocation of its U.S. headquarters, warning of increasing dependence on the U.S. in South Korea's semiconductor industry. The report suggests that if South Korean companies shift production facilities and key talent to the U.S. amid pressure to expand domestic semiconductor production, the domestic semiconductor ecosystem could weaken.
The Global Times (GT) reported on July 22 that "U.S. industrial policy is directly impacting not only Samsung Electronics but the entire South Korean semiconductor industry."
Earlier, Reuters reported that Samsung Electronics America (SEA) would affect 739 positions as it moves its headquarters from New Jersey to Texas. SEA oversees the consumer electronics business but does not include the semiconductor division. Reuters noted that "Samsung's workforce reduction is linked not only to the headquarters move but also to intensified competition in the consumer electronics market and rising semiconductor costs." Additionally, the U.S. has been continuously demanding South Korean semiconductor companies to expand production within its borders under the guise of supply chain security.
In response, the editorial stated, "Recently, the U.S. has increased pressure on South Korean semiconductor companies beyond subsidies and tax incentives, aiming to integrate them more deeply into a U.S.-centric supply chain."
While acknowledging that close cooperation with the U.S. could provide opportunities for market share expansion and stable entry into the U.S. market, the editorial warned that "merely following U.S. strategic priorities could place South Korea in a vulnerable position."
It specifically pointed out that as South Korea's semiconductor industry becomes more dependent on U.S. strategic priorities, the risk of being subordinated to U.S. interests increases. The report argued that since the U.S. prioritizes its own interests, South Korea's industrial benefits could be sidelined or sacrificed.
The potential hollowing out of South Korea's manufacturing base was also mentioned. The editorial warned that "in response to U.S. demands for local production, South Korean companies might relocate production capacity and key engineering talent to the U.S., which could weaken the domestic semiconductor R&D foundation, industrial employment ecosystem, and supply chain competitiveness in the long run."
The editorial also noted that the South Korean government is actively promoting the domestic semiconductor industry, including a project to establish a semiconductor cluster in the southwestern region based on an investment of 800 trillion won. It emphasized that the South Korean government's commitment to developing the domestic industrial base starkly contrasts with the reality of industries relocating overseas due to external pressures, stating that "consolidating the domestic industrial base and maintaining an independent development trajectory amid complex external pressures is a long-term challenge that the South Korean semiconductor industry must address over the next decade."
Recently, Chinese state media have been increasingly critical of South Korea's expanding industrial cooperation with the U.S., reflecting concerns that strengthened collaboration between South Korea and the U.S. could diminish the position of Chinese companies.
On July 10, the Global Times expressed skepticism about whether South Korea's shipbuilding industry could achieve substantial industrial results through deepened cooperation with the U.S., arguing for the necessity of collaboration with China.
Meanwhile, the Chinese state-run Huanqiu Shibao on July 22 asserted that South Korean companies should actively utilize the Chinese market in advanced science and technology sectors. Chen Jing, a researcher at the Chinese private think tank Science and Technology Strategy Research Institute, argued in an op-ed that South Korean companies should leverage the Chinese market as a testing ground for technological capabilities, cost competitiveness, and product development speed, and benchmark against Chinese companies.
* This article has been translated by AI.
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