South Korean President Yoon Suk-yeol and Dutch Prime Minister Mark Rutte recently introduced a “semiconductor alliance” in a strategic move to lessen dependence on China’s supply chain. This unprecedented alliance is intended to enhance the competitiveness of the semiconductor industry and address supply chain challenges. South Korea has established previous partnerships in the sector with the United States and Japan, and the collaboration with the Netherlands is an important addition to its strategic plans.
During his four-day state visit to the Netherlands on December 11, President Yoon and Prime Minister Rutte announced their joint intention to intensify their strategic partnership. This included the formation of a “semiconductor alliance,” which aims to foster economic cooperation, address security challenges, and uphold a rules-based international order. The alliance also represents a joint effort by South Korea and the Netherlands to address scientific and technological challenges and gain a competitive edge in the semiconductor industry.
The Netherlands is recognized for its robust semiconductor equipment capabilities, and ASML, a leading global semiconductor equipment company, is a key institution in this sector. As South Korea has acknowledged its limitations in the non-memory semiconductor sector, particularly in materials and equipment, the Netherlands is a critical ally. The Netherlands is South Korea’s second-largest trading partner within the European Union and is a leading source of investment, further highlighting the historical bond between the two countries.
ASML’s support and partnership with South Korea was validated as they hosted President Yoon during his visit. In a landmark move, ASML offered its core facilities, including its cleanroom showcasing 2-nanometer technology, to a foreign head of state for the first time. During the visit, pivotal agreements were signed by Samsung Electronics and SK Group with ASML, marking the start of significant technological collaborations.
National security official Kim Tae-hyo underlined the semiconductor alliance’s goals of establishing robust cooperation in the semiconductor sector to address supply chain disruptions. To expedite the formation of the alliance, South Korea and the Netherlands have implemented various bilateral consultation frameworks, concentrating on economic security and industrial policy. A significant step in this direction was the signing of a memorandum of understanding to enhance cooperation in the semiconductor supply chain.
South Korea’s reliance on China for key semiconductor materials is significantly high, particularly for rare earth metals and core secondary battery materials. In response to these vulnerabilities, South Korea is intensifying diplomatic efforts and collaborating with the Netherlands, the United States, and Japan to mitigate supply chain risks. This initiative aims to enhance South Korea’s supply foundation for critical minerals and strengthen its resilience against potential disruptions.