The whole world is currently facing a shortage of chips. In order to find a solution to the problem, the US Department of Commerce made a request to technology companies entering the supply chain. These should provide a certain amount of information on their stock and sales of chips. After days of negotiations, the Korean companies decided to comply. The information relayed by Bloomberg was revealed this morning by the Korean Ministry of Finance.
A request that has raised controversy in South Korea
Last September, therefore, the United States submitted a form to companies operating in the semiconductor sector. This had to be completed and returned by November 8. Said form is in the form of a questionnaire intended for chip manufacturers.
The latter must provide information on their stocks, arrears, delivery times and methods of supply. They must also provide information on their main customers and specify the means they have implemented to increase their production.
A request that did not please South Korean citizens at all, to the point of triggering a national controversy in the country. It should be noted that Samsung Electronics and SK Hynix, which are two of the largest chipmakers in the world, are both affected by the US demand.
However, these two companies are national treasures in South Korea. The country therefore saw the request as an unfair move by Washington to get its hands on trade secrets. Local reports even indicated that the companies concerned would provide only part of the information requested.
A decision going in the direction of appeasement
The South Korean government obviously does not want to go to trial with the United States by protecting its industry at all costs. Through its finance minister, the Land of Quiet Mornings said its tech companies were preparing for a voluntary bid.
In order to reassure his fellow citizens, he also added that Korean tech giants had already had to negotiate with the United States. Negotiations concerning the data that will be transmitted to the Americans. However, he did not give further details on the said information.
It must be said that although the request is “voluntary”, Gina Raimondo, the US Secretary of State for Commerce had formulated threats to the industry. If the officials of the companies concerned did not comply, then the White House could force their hand. This, by using certain tools such as the law on defense production.
A situation that the South Korean government wanted to avoid for its companies. The United States remains above all a commercial ally of the Americans in Asia. Particularly at a time when semiconductors have become a sticking point between China and the US, both of which seek to secure their supply chains.
According to its finance minister, South Korea is in no way trying to offend its partner. Although the country seeks to consolidate its partnership with the Americans.
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