On August 1, BusinessKorea reported that the South Korean government should decide whether to join the "Chip 4 Alliance" by the end of this month. The idea put forward by the United States is to establish a stable supply chain in the semiconductor industry by utilizing the chip design capabilities and core technologies of the United States, the manufacturing capabilities of South Korea and Taiwan, and Japan's advantages in materials, components and equipment. The alliance aims to curb the growth of mainland China's semiconductor industry.

Debate over the matter is intensifying in South Korea as the deadline looms, which means it must choose between U.S. technology and the Chinese market.

According to some experts, South Korea's participation in the alliance will lead to retaliation from mainland China, as was the case with the deployment of THAAD in South Korea. Currently, more than 60% of South Korea's semiconductors are exported to mainland China and Hong Kong, China, and both Samsung Electronics and SK Hynix have opened factories in mainland China. On the other hand, Taiwan and Japan are not dependent on China's semiconductor market, and there is no reason to be hesitant to join the alliance. That's why mainland China is only putting pressure on South Korea.

The report pointed out that South Korea's "strategic ambiguity" is coming to an end. Its manufacturing activities in the semiconductor industry would not be possible without U.S.-originated technology. If the United States chooses to control these activities with its patented technology, the consequences will be severe.

It is true that South Korea may have to face retaliation from China on the side of the United States, but this requires a more thorough reality check. In the past 10 years, Samsung Electronics' share of the smartphone market in mainland China has dropped from more than 20% to nearly 0%. Hyundai Motor Co., which has been operating in mainland China for 20 years, had a local market share of 0.8 percent in June this year. In addition, the electric vehicle battery market in mainland China is being dominated by local companies such as CATL and BYD, leaving no opportunity for Korean battery makers. As a result, the same situation may also occur in the semiconductor market in mainland China.

The report believes that the United States is increasingly curbing the semiconductor industry in mainland China. And the pressure on Korean semiconductor companies doing business in mainland China is not a good thing at all. Also, without memory chips from the US, South Korea and Japan, mainland China cannot produce its IT products. To do this, South Korea needs to be well ahead of mainland China in memory and non-memory chip technology. And joining a coalition is the most effective way to achieve that, and the South Korean government must keep that in mind when making its decision.