Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Korea, Netherlands form chip alliance for supply chain resilience
President Yoon Suk Yeol shakes hands with Dutch Prime Minister Mark Rutte after their joint press conference at the prime minister's office in The Hague, Wednesday (local time). Yonhap
By Nam Hyun-woo
Yoon, Rutte say bilateral ties are 'better than ever'
Korea and the Netherlands agreed to form a semiconductor alliance to create synergy between Korean chipmakers and Dutch chipmaking equipment suppliers, President Yoon Suk Yeol and Dutch Prime Minister Mark Rutte announced, Wednesday.
“The two countries decided to establish a semiconductor alliance encompassing governments, companies and universities,” Yoon said during a press conference after their summit at the prime minister’s office in The Hague.
“The Netherlands, which is the world’s largest semiconductor equipment supplier, and Korea, which is a powerhouse in manufacturing chips, each hold crucial positions in the global supply chain. Our two countries will combine each other’s strength to maximize the value and efficiency of their semiconductor partnership.”
Yoon and Rutte held their fourth summit during the Korean leader’s four-day state visit to the Netherlands. During the summit, the leaders explored ideas to deepen bilateral relations, which were already elevated to a strategic partnership during Rutte’s visit to Seoul last year.
The Korean president’s visit to the Netherlands has been touted as a trip for the semiconductor partnership between the two countries.
Before the summit, Samsung Electronics and Dutch equipment supplier ASML agreed to jointly invest 1 trillion won ($762 million) to build a research fab in Korea to develop chip manufacturing technologies using extreme ultraviolet (EUV) equipment, while the two governments agreed to launch a semiconductor dialogue.
“Until now, the relations between Korea and the Netherlands in terms of semiconductors were a close partnership,” Yoon said. “On the occasion of my visit to the Netherlands this time, they were elevated to an alliance.”
“Allies share important military intelligence and plan operations together,” Yoon added. “When we say we have built a semiconductor alliance, it means that the two countries will closely share information, discuss and solve technological problems together in order to maintain the lead between us and followers in the semiconductor industry.”
President Yoon Suk Yeol is greeted by Dutch Prime Minister Mark Rutte before their summit at the latter's office in The Hague, Wednesday (local time). Yonhap
It was the first time the two countries used the term “semiconductor alliance” in a joint statement with the leader of a foreign country.
“The term symbolizes the two countries’ relations overcoming supply chain disruptions together so that they can maintain a technological lead in the field of semiconductors, which is a pivotal area determining the core interests of economic security across all industries,” Seoul’s First Deputy Director of National Security Kim Tae-hyo said.
“While pursuing close cooperation in normal times, the two countries will seek to jointly execute scenarios to overcome supply chain disruptions in times of crisis,” Kim added.
In the joint statement following the summit, Yoon and Rutte noted that the two countries will facilitate the chip alliance by enhancing intergovernmental knowledge and information exchanges to strengthen the resilience of supply chains for critical items. They also agreed to establish educational programs between their governments, businesses and universities to nurture semiconductor experts.
Following the agreement to form the alliance, the foreign affairs ministries of the two countries plan to set up an annual dialogue on economic security, a dialogue on semiconductor policy coordination between industry ministries and a new consultative body on supply chain partnerships.
During the press conference, Yoon and Rutte both said bilateral relations are “better than ever” and noted that their partnership is deepening not only in the semiconductor industry, but also in the fields of national security, economic security, energy, agriculture and people-to-people exchanges.
For this, the leaders agreed to establish a biennial two-plus-two foreign and industry ministerial dialogue to deepen the “strategic partnership.”