China asks Korea for cooperation on semiconductor supply chains

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China asks Korea for cooperation on semiconductor supply chains

Published: 28 May. 2023, 18:21

Korean Trade Minister Ahn Duk-geun, left, and Chinese Commerce Minister Wang Wentao take a photo on the sidelines of the Asia-Pacific Economic Cooperation conference in Detroit. [YONHAP]

China has asked Korea for cooperation on semiconductor supply chains.

The Chinese Ministry of Commerce said in a statement that China and Korea agreed to strengthen cooperation on maintaining the stability of the industrial supply chain on Saturday during Chinese Commerce Minister Wang Wentao's meeting with Korean Trade Minister Ahn Duk-geun on the sidelines of the Asia-Pacific Economic Cooperation (APEC) conference in Detroit.

The Korean Trade Ministry, however, did not mention chips in a release right after Ahn's meeting with Wentao. It instead said Ahn asked China to "stabilize the supply of key raw materials and asked for a predictable business environment for Korean companies in China."

The Korean Trade Ministry did not make any comment on China's announcement.

It came after China recently decided to impose sales restrictions against U.S. chipmaker Micron over "network security risks." The Boise, Idaho company posted $3.3 billion in sales in China, accounting for about 11 percent of its entire global sales.

Samsung Electronics and SK hynix have generated far higher sales from China since the two chipmakers are capable of producing high-end memory chips and processors that Chinese makers can’t.

On Saturday, Korea, as one of 14 countries in the U.S.-led Indo-Pacific Economic Framework for Prosperity, reached an agreement to cooperate on supply chain issues in an effort to reduce economic dependence on China.

BY SARAH CHEA [[email protected]]