Strategic Realignment Through Semiconductors and Innovation
This week's high-profile visit by Republic of Korea (ROK) President Lee Jae Myung to the Chinese mainland concluded with significant progress in bilateral economic cooperation. Accompanied by leaders from Samsung, SK, Hyundai, and LG, the delegation's focus on semiconductors and advanced manufacturing signals a new phase in cross-border collaboration.
Deepening Economic Interdependence
With $328.08 billion in bilateral trade recorded in 2024, China remains the ROK's largest trading partner for the 21st consecutive year. The visit highlighted how ROK semiconductor exports and China's rare earth resources maintain a symbiotic relationship, particularly crucial amid global supply chain restructuring. Samsung's Xi'an facility now produces 40% of its global NAND flash output, while SK Hynix's Wuxi plant has fully adopted Chinese-made hydrogen fluoride.
Next-Generation Collaboration
Cooperation has evolved from basic manufacturing to joint technical development, with Samsung planning process upgrades in Xi'an and SK Hynix exploring packaging partnerships with Yangtze Memory Technologies. This shift helps ROK firms navigate US technical controls while accelerating China's semiconductor supply chain development.
Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CGTN.
