US Proposal Leaves Samsung Puzzled

  • Anti-China Alliance Proposal leaves S.Korea in Predicament.

United States is asking & encouraging S.Korea to enter within its global semiconductor division, which includes Samsung, HK Hynix, and others.

South Korea can reinforce its supply chain within the industry.

The concept was recommended in Walk this year and a working-level assembly is planned to examine specifics in August.

This 31st of August is the deadline to submit the decision for the Koreans, which leaves both the country & companies in a fog.

The United States already has its fair share in proposing and shaping the alliance to counter the Chinese constituting the S.Korea, Japan & Taiwan, in the upcoming future.

 South Korea’s situation lies within the reality that the commerce in China for Samsung Electronics and SK Hynix is immense. 

Samsung Electronics has a NAND drive plant in Xi’an accounting for more than 40 percent of its NAND drives yield, while SK Hynix produces DRAMs in Wuxi, China accounting for 45% of its total production for DRAM.

According to the wind in industry, it is conceivable that South Korea will become an associate of the union in the finale of this play.

The United States is driving the hardware and computer program fragments of the industry, Taiwan is the exceptional foundry pioneer, Japan is taking the lead on the component and fabric sides, and South Korea cannot create chips without them.

What the South Korean government has to do is to play down potential harm to South Korean companies by seeking practicality between the United States and China.

-Industry experts.

China is the major place for many manufacturers due to the cheap labor cost and fewer environmental restrictions, however, it has been changing recently as Samsung Electronics reduced its workforce in China to a mere 10,000, from a Samsung report released on July 6.

The changing mood and strict blockade policy for the pandemic have also hindered Samsung’s stable business in China, keeping with the beads in the thread this alliance seems to be certainly imaginable as Samsung has also discontinued acquisitions of the in-home appliance and semiconductor manufacturing leftover facilities in the self-proclaimed Middle Kingdom.

Source- Business Korea