S. Korea, Netherlands agree to codify ‘semiconductor alliance’

Dec 14, 2023, 09:40 am

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President Yoon Suk-yeol and Dutch Prime Minister Mark Rutte shake hands during a joint press briefing at Rutte’s office in The Hague after their summit on Dec. 13, 2023./ Source: Yonhap News

By AsiaToday reporter Hong Sun-mi

South Korea and the Netherlands adopted a joint statement that codified a “semiconductor alliance” on Wednesday.

The two countries will seek to maintain special cooperation in the semiconductor sector to maintain a lead in their chip technologies and jointly overcome supply chain risks.

This is the first time for South Korea to expressly state the establishment of a semiconductor alliance with another nation in a joint statement.

Analysts say that the formation of a semiconductor alliance between South Korea, a powerhouse in manufacturing chips, and the Netherlands, the world’s largest semiconductor equipment supplier, has laid the foundation for preempting the future chip market.

President Yoon Suk-yeol and Duth Prime Minister Mark Rutte announced the joint statement in a press conference after their summit held at the prime minister’s office in The Hague during Yoon’s state visit to the Netherlands.

“The two countries decided to establish a semiconductor alliance encompassing governments, companies and universities,” Yoon said. “The two countries will combine each other’s strength to maximize the value and efficiency of their semiconductor partnership,” he said.

Under the new partnership, the two countries agreed to establish an annual economic security dialogue of foreign ministries and a semiconductor dialogue between their industrial authorities to help realize the new alliance. They also agreed to create a program on fostering talents related to chip making and to form a consultative body over the bilateral chip supply-chain cooperation.

The two sides also agreed to strengthen cooperation on nuclear power plants’ construction, operation and safety, and expand cooperation on carbon-free energy to achieve carbon neutrality and energy security.

“The establishment of various bilateral consultation channels on economic security and industrial policy and the signing of MOUs on cooperation in supplying key items, including semiconductors, will accelerate the establishment of a semiconductor alliance,” Principal Deputy National Security Adviser Kim Tae-hyo told reporters in Amsterdam. “The alliance will serve as an opportunity to connect the semiconductor supply chain ecosystems of the two countries even more closely,” Kim said.

Both countries also agreed to establish a biennial 2+2 foreign and industry ministerial dialogue to deepen the strategic partnership relationship.

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