Yoon says competition in semiconductor sector is 'industrial war'

By Lee Haye-ah

SEOUL, June 8 (Yonhap) -- President Yoon Suk Yeol vowed Thursday to provide further support to the semiconductor industry, saying the intensifying global competition over chips is equivalent to an "industrial war."

Yoon made the remarks while presiding over a regular economic meeting that this week doubled as a national semiconductor strategy meeting.

The semiconductor sector is one of the country's mainstay industries, accounting for 20 percent of its exports and 55 percent of equipment investment in the manufacturing sector, according to the presidential office.

"If we are to win in the semiconductor war, we need both private sector innovations and the government's leading strategy at the same time," Yoon said during the meeting at the former presidential compound of Cheong Wa Dae.

"Geopolitical issues are recently becoming the biggest management risk to businesses, but this is a problem that businesses can't solve alone. It's a problem that the state must resolve by strengthening cooperation and closely communicating with the United States and other friendly nations," he added.

While South Korea has led the global memory chip sector for 20 years, it faces intense competition from rival nations and deepening geopolitical risks triggered by the U.S.-China rivalry. Meanwhile, in the system semiconductor sector, which accounts for 60 percent of the overall chip market, the country has struggled to establish a firm industrial base.

"Semiconductor competition is an industrial war," Yoon said. "It's a national all-out war."

The meeting brought together around 60 people, including academics from the engineering and semiconductor fields, businesses executives, such as SK hynix CEO Kwak Noh-jung, relevant government ministers and leaders of the ruling People Power Party, to discuss ways to maintain the lead in the memory chip sector and secure the necessary materials, parts and equipment, as well as skilled personnel, and strategies for fostering the system semiconductor sector.

hague@yna.co.kr
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