In light of the acute diplomatic disputes between the United States, South Korea, and China, the US administration is pushing for its Asian partner to join the strategic blocking of China’s technological development.
According to insider information from Bloomberg, after joint negotiations, the United States allowed Samsung and SK Hynix, key South Korean chipmakers, to develop their Chinese facilities.
However, US officials are now trying to impose sanctions on South Korea like those in the United States against China. This would require Korean companies to stop supplying certain types of chips and equipment for their production to China.
Intense diplomatic negotiations between the two governments are underway, but conflicting interests may make it difficult to reach a consensus. Adopting such sanctions could lead to severe losses for South Korean companies that have a significant impact on the Chinese memory market and the silicon wafer segment.
These measures could also provoke a Chinese response, leading to losses for the South Korean economy. In this regard, reaching a compromise before the June G7 summit may be difficult.