The United States government is reported to have proposed a semiconductor alliance with South Korea, Japan, and Taiwan to limit China's growing semiconductor industry. This proposal aims to reduce the US's reliance on China for crucial technology components.
South Korea, home to major chipmakers Samsung and SK Hynix, expressed reservations. These companies have substantial investments in China and fear potential retaliation from Beijing should they participate in such an alliance. The proposal's details and official confirmation remain unavailable.
The push for reduced reliance on China's supply chains intensified after the COVID-19 pandemic-induced chip shortage. Earlier attempts at forming similar alliances between the US, Taiwan, Japan, and the European Union were made in 2020.