Washington has urged Seoul to influence its chipmakers to avoid stepping into gaps in the Chinese market should Beijing decide to prohibit Micron from selling memory and other semiconductors there. The request, reported by Finance Times citing sources familiar with the discussions, comes as part of broader talks on supply chain resilience and national security.
Sources indicate that the White House pressed South Korea during discussions that coincided with the South Korean president’s visit to the United States on April 24. The aim, as described, is to deter South Korean companies from expanding or redirecting supply in ways that would undermine any potential Chinese restrictions on Micron.
Analysts note that this moment is part of a larger pattern: trade frictions between the United States and China have already begun to influence the trajectory of the global chip industry. Recent market data show volatility in the sector, with national semiconductor indices reacting to regulatory and diplomatic signals. FactSet metrics tracking chip-related equities dipped more than 5% on a recent session, tempering gains for the year and underscoring the sensitivity of this market to geopolitical developments.
Industry observers argue that Chinese chip manufacturers may accelerate the push to build independent ecosystems. This would involve substantial investment in local design, fabrication, and material supply chains to reduce exposure to external shocks. In parallel, Chinese authorities have signaled continued support for domestic capacity expansion, encouraging local firms to scale up production and pursue advanced process technologies.