The United States and Japan have joined hands to develop cutting-edge, next-generation semiconductors for application in quantum computers and artificial intelligence. The two countries' commerce and foreign ministers met in Washington, D.C., last Friday. They agreed to establish a joint research center to develop this key resource.
Japan plans to set up a research center this year to develop a leading-edge semiconductor with a line width of 2 nanometers (2 nm or 2 billionths of a meter) and begin mass producing them from 2025. Korea and Taiwan are the only countries in the world with the facilities to manufacture chips of less than 5 nm. However, the U.S. and Japan appear set to make a preemptive move for fear of a supply cut from Taiwan if China should invade the island country.
The U.S. has already launched an all-out offensive to secure future leadership in semiconductors. It is scrambling to build a U.S.-led global semiconductor supply network, using a carrot-and-stick approach of diplomatic pressure and a new legislation that supports $280 billion (364 trillion won). Samsung Electronics and SK Hynix have also committed to making facility investments of 250 trillion won, and 25 trillion won in the U.S.
In addition, Washington is pressing Seoul to decide by the end of this month whether the nation will participate in the so-called "Chip 4," which bundles the U.S., Japan, Korea, and Taiwan into one semiconductor alliance. On the other hand, China is urging Korea not to join the Chip 4 alliance, threatening Seoul with further retaliation like Beijing's response to the deployment of a U.S. Terminal High Altitude Area Defense (THAAD) anti-missile battery here in 2016. Korea is in a dilemma ― if it chooses one, it will lose the other.
The semiconductor is the core strategic asset all great powers seek as the "oil of the 21st century." At a time like this, when the global political and economic orders are shifting, conflicts and conciliations surrounding semiconductor hegemony can change at any time. Korea cannot ignore the demands of America, its ally and global superpower. However, Seoul must also find a way to co-exist with Beijing, its most significant economic partner. In addition to strategic considerations, Korea must secure and maintain its industrial competitiveness so that no other country can overtake it.