The White House underscored the importance of partnerships with allies like Korea to tackle the global shortage of chips and prevent China from getting high-tech dominance in a 250-page report released Tuesday.
Even auto parts makers in Korea are feeling the pinch from the global chip shortage.
One of the CEOs of SK hynix, the world’s second largest memory chip maker, has suggested more of a commitment to contract chip manufacturing, a major shift in the company’s business.
Samsung Electronics may have trouble manufacturing TVs because of the global shortfall of semiconductors.
Telechips, a Seoul-based automotive chip producer, recently released a microcontroller manufactured by Samsung Electronics. It's hoping to make hay on the supply crunch.
A group of local chip machinery and component suppliers have made notable strides to become global leaders in their areas, although Korea traditionally trails behind in the high-tech parts and equipment sectors.
In attending a meeting next week at the White House, Samsung Electronics is carefully balancing interests as the United States pushes for more semiconductor production and China remains the largest buyer of chips from the Korean company.
SK hynix wants to open research and development units in the United States or Europe and is leaving the door open to more mergers and acquisitions.
The Korean government is enlisting Taiwan's help to ensure a stable supply of automobile semiconductors, fearing a shortage's effects on the local vehicle industry.
A global chip shortage that started in the auto industry and spread to other businesses has driven up the shares of Samsung Electronics, generating speculation that the Korean chipmaker might go into the auto chip business in a big way.