Chinese state media claims, “Korean semiconductor companies must supply cutting-edge semiconductors to the Chinese market”

Chinese state media argued that Korean semiconductor companies should begin supplying advanced semiconductors to China amid growing calls in the United States to strengthen regulations on high-tech semiconductors from Nvidia in China.

Global Times, an English-language media outlet affiliated with China's People's Daily, wrote in a commentary on the 13th, "The question is whether political resistance to the construction of data centers in the United States will put a brake on the growth of U.S. semiconductor demand or even cause stagnation or decline," and added, "Korean semiconductor companies must pay close attention and clearly evaluate the impact on export prospects."

The media emphasized that if Korean companies pursue market diversification to prepare for the risk of slowing demand growth in the U.S., China is likely to be high on their priority list, and argued that the Chinese market has potential as memory prices are still high and expected to rise further.

He then emphasized that Korean companies should not underestimate China, saying that if Chinese semiconductor companies can overcome the remaining technological difficulties, they will be able to rapidly expand production scale based on China's opposing supply chain and manufacturing capabilities and turn technological progress into a powerful competitive advantage.

“If Korean semiconductor companies want to maintain or expand their presence in China, they must provide cutting-edge products to Chinese customers,” he said. “(For this) it is essential to find a way to overcome U.S. sanctions that are blocking the export of advanced high-bandwidth memory (HBM) to China.”

The media pointed out, "The controversy surrounding Jensen Huang, who resigned as CEO of Nvidia, is adding weight to new demands in the United States to strengthen regulations on China's access to advanced semiconductors."

He added, “If semiconductors are important to the Korean economy, there is reason for Korean companies to put pressure on China to expand the scope to sell their cutting-edge products,” adding, “Korea must assert its own economic interests.”

As the 'Chinese espionage theory' attracted attention after former Nvidia CEO Jensen Huang admitted to having an affair on the 8th (local time), China defined the related allegations as slander, while being wary of the possibility that the United States would use this as a pretext to strengthen control of Chinese high-tech technology.

In a briefing on the 12th, the Chinese Ministry of Foreign Affairs raised its voice, saying, "China's scientific and technological progress is due to independent innovation and open cooperation," and "The United States must stop seeking an excuse to implement a scientific and technological blockade by making up the so-called 'espionage' narrative."