ED Washington going too far

Demands for semiconductor info could harm Korea

The Moon Jae-in administration has announced its position regarding the controversial U.S. demands for global semiconductor makers, including Samsung Electronics, to hand over sensitive trade secrets. The government's statement was little more than a formality, saying it had delivered its concerns over Washington's request and would positively discuss the matter. Considering that the U.S. demands could infringe on Korea's national interest, Seoul's response was too timid.

“We need to respond to the matter based on three factors ― corporate autonomy, governmental support, and Korea-U.S. cooperation,” Finance Minister Hong Nam-ki said during the first External Economic Security Strategy Meeting, Monday. It is difficult to know how Seoul will cope with Washington's demands from Hong's remarks. It was just an expression of the government's position of, in principle, prioritizing the bilateral alliance.

The government's “passive” response comes in stark contrast to the Taiwanese reaction of openly expressing disapproval. Taiwan's TSMC is the world's largest foundry that contract manufactures and designs semiconductors. On Sept. 30, the head of Taiwan's National Development Committee showed the island state's determined position that TSMC would not provide its clients' confidential data or get involved in practices that threaten the rights of its clients and shareholders.

The detailed U.S. requests have a few incomprehensible points. For instance, the items for submission include the three largest clients for each chip brand, customers' share of total sales, and even technological levels of major products. The overreaching U.S. demands aim to exclude China from the semiconductor supply network while ensuring a stable supply to America. The U.S. is encouraging Intel to expand its manufacturing facilities even by offering subsidies. Under these circumstances, who can guarantee that Washington would not hand over Samsung's business secrets to Intel or other U.S. chip designing companies?

Once secret corporate information is leaked, it leads to irreversible consequences. The U.S. is a very important ally for Korea, but the Moon administration should draw the line as far as the core interests of its businesses and industries are concerned. Washington must withdraw its demands as soon as possible, realizing that they gravely damage mutual trust and do not help establish a U.S.-led technological alliance.