HIGHLIGHTS
- Samsung has a significant manufacturing infrastructure in China.
- China is launching economic warfare in order to gain control of Taiwan's semiconductor industry.
- Samsung's NAND flash output in China accounts for 40% of total production.
The US has suggested forming a semiconductor industry alliance comprised of the US, Taiwan, South Korea, and Japan in order to prevent China from acquiring dominance in the strategic sector. However, according to Taiwan News, quoting Business Korea, South Korea is not totally on board with America's proposal.
"Of course, cooperation with the United States is the primary priority, but the largest market (China) is equally critical," Taiwan said, citing Business Korea sources.
The South Korean government is wary about jeopardising the operations of South Korean chipmakers such as Samsung, who have a key manufacturing infrastructure in China.
Samsung's only overseas memory chip facility is located in the western Chinese city of Xi'an. The fab produces around 40% of the Korean conglomerate's entire NAND flash output.
Meanwhile, China is conducting economic warfare to acquire Taiwan's semiconductor industries, which are second only to the US in the world.
According to The HK Post, the Taiwanese government has accused China of waging economic warfare against Taiwan's innovation industry by stealing technology and poaching qualified experts.
Taiwanese Executive Minister Lo Ping Cheng accused Beijing of luring Taiwan's advanced-tech personnel and engaging in theft of national critical technologies, circumventing regulations, illegally investing and operating in Taiwan, causing the nation to suffer a significant loss in IT security and industry competitiveness.
Semiconductors, sometimes known as "chips," are critical building elements in technological innovation and economic prosperity. These chips are found in almost every electrical equipment, including cellphones, electronic cars, hypersonic weaponry, airships, pacemakers, and so on.
In recent years, the Taiwanese government has recorded many allegations involving Chinese organisations stealing chip trade secrets.
While China produces the vast majority of the world's computers and cellphones, it imports nearly all of the semiconductors required to power these devices.
To reduce its technical reliance, China engages in industrial espionage and other actions on a regular basis in an effort to create its own semiconductor sector. This was also one of the key reasons China was working so hard to reclaim Taiwan.
According to The HK Post, the Taiwan Investigation Bureau, which is overseen by the Ministry of Justice, apprehended 60 Chinese citizens on suspicion of stealing trade secrets and poaching tech personnel from Taiwan.
Vimicro, GLC Semiconductor, Analogix Semiconductor, and Beijing Yinxing Technology are among the firms being probed.
