The United States has reportedly asked South Korea for assistance in pressuring their chip manufacturers not to fill any market gaps left by Micron Technology, an Idaho-based semiconductor company in case China bans the company from selling chips. The White House is aiming to unite allies against China's economic coercion, and this request was made in anticipation of South Korean President Yoon Suk-yeol's visit to Washington D.C. Micron Technology is one of the three major players in the global DRAM storage chip market, along with South Korea's Samsung Electronics and SK Hynix.
China has launched a national security review of Micron Technology this month, but it is still unclear whether there will be any punitive measures taken by the country's National Internet Information Office. Many US officials and corporate executives believe that this review is the Chinese government's retaliation for President Joe Biden's efforts to prevent China from acquiring or producing advanced semiconductors. The Micron Technology case has become a litmus test of sorts to determine whether Beijing would take compulsory economic measures against a major US company.
Sources revealed that the United States has also requested Seoul to encourage Samsung Electronics and SK Hynix not to increase their sales in China in the event that Micron Technology is prohibited from selling its chips due to the Chinese government's investigation. This move shows how the US is trying to curb China's increasing dominance in the global tech supply chain, specifically in the semiconductor industry. It is clear that the US is looking for ways to maintain its technological edge over China by seeking the help of its allies, and this issue could have significant implications on the global economy.
In conclusion, tensions in the tech industry are escalating with the Micron Technology case representing a major challenge in the power dynamics between the US, China, and South Korea. The economic impact of these developments is yet to be fully realized, but it is clear that maintaining competitive advantages in the global tech industry is of great significance to the US and its allies.
