South Korea, China agree to strengthen talks on chip industry: Commerce ministry

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, China’s commerce minister said.

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 May 27, AlArabiya reports.

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

However, a South Korean statement on the same meeting did not mention chips, instead, the country’s trade minister had asked China to stabilize 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 authorized 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 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.