US Semiconductor Policies Risk Damaging Asian Allies, Critic Says
South Korean lawmaker Yang Hyang-ja strongly criticized the United States’ semiconductor policies toward China, stating that these legislative measures could potentially harm relations with Asian allies, including South Korea. Yang, a former member of the main opposition Democratic Party and a chip engineer and executive at Samsung Electronics, expressed concerns about US attempts to curb China’s access to advanced chips.
In an interview with the Financial Times, Yang warned that imposing unpredictable punishments on other nations and implementing America First policies could lead to the formation of an alliance against the US. She urged Washington to consider common human values, as using its strength as a weapon was not desirable.
The United States has enacted legislation offering subsidies to chipmakers in exchange for relocating their manufacturing facilities to the US mainland, while also imposing restrictions on facility expansion in China. These actions come as part of an effort to isolate and limit China’s technological progress. However, the consequences are already being felt by major players like Samsung.
Samsung’s second-quarter operating profit plummeted 95.3 percent compared to the same period last year, following a staggering 95.5 percent decline in the previous quarter. The company’s chip-making unit has incurred a significant operating loss of nearly 9 trillion won (approximately 6.85 billion US dollars) during the first six months of this year.
Yang believes that China will respond to US sanctions by redoubling its efforts to achieve rapid technological progress. She anticipates that China will provide stronger national support to pursue this goal. Yang further argued that the US should abandon its current strategy, which has disrupted the global value chain, by attempting to extract benefits through shaking and breaking it.
The criticism from Yang highlights the growing concerns among Asian allies about the consequences of US semiconductor policies. As tensions persist between the US and China, it is essential for policymakers to consider the wider impact on international relations and shared technological advancements. A balanced approach, based on cooperation and common interests, could prove more fruitful in navigating the complex world of global semiconductor trade.
As this issue unfolds, it remains to be seen how the US will respond to criticism and whether it will reevaluate its semiconductor policies. The consequences of these policies extend beyond economic losses, potentially straining relations with crucial Asian allies. A holistic approach that considers the long-term consequences and fosters cooperation would be instrumental in maintaining global stability and technological progress.
