According to experts, strategic moves will strengthen companies’ response to new US policies.
Former US Ambassador to Korea Mark Lippert will join Samsung Electronics next month as Head of Corporate and Government Affairs in North America.
Industry experts said Korea Herald They believe that this adoption will strengthen Samsung’s response to changes in US policy, especially on chips, which has emerged as an important strategic item in the risks of the global supply chain.
Lippert is expected to begin working for the tech giant in March as Executive Vice President of Samsung Electronics America, overseeing external relations in the region. He is reportedly in the final stages of signing the contract.
South Korean public opinion believes that Lippert will play a role in helping the Samsung and Biden administrations build a US-centric semiconductor supply chain and strengthen the US-ROK technology alliance. according to To the Korea Economic Daily.
Last November, Samsung announced that it would invest $ 17 billion to build a new foundry chip production line in Tailor, Texas. This is the largest investment ever in the United States.
Chip makers said they are targeting the second half of 2024 to get advanced semiconductor fabs up and running.
According to the Korea Economic Daily, major Korean companies are acting on Washington’s policies. A company’s global investment, sales and M & A strategies can change in response to policy trends from the White House and the US Department of Commerce.
In 2020, the Trump administration prevented ASML, a Dutch semiconductor manufacturing equipment provider, from selling EUV (extreme ultraviolet) lithography systems, an essential device for the manufacture of advanced microchips, to China.Efforts were taken over by the Biden administration and continued the stance of the Trump White House and The Wall Street Journal. report..
In addition, the blockbuster sale of British semiconductor and software design firm ARM Holdings to US chip giant Nvidia by Japanese multinational conglomerate Softbank has recently been shelved due to US regulatory hurdles. ..
according to Reuters Softbank’s cash and equity deal with Nvidia was reportedly announced in 2020, but the US Federal Trade Commission appealed to block it in December, with self-driving car chips and a new category. He insisted on early market competition for networking chips. You may be injured.
The collapse of this sale represents a major setback for Japanese conglomerates’ efforts to generate funds when the valuation of the entire portfolio is under pressure.
“It’s more important than ever to understand the US government’s policy stance, especially in the Biden administration,” said an industry insider. Korea Economic Daily..
According to the Daily, a large South Korean company with an office in Washington says it’s difficult to understand the Biden administration’s policy orientation, as every step is like “walking on thin ice.” , Korean companies need to consider hiring the former diplomat.
The Biden administration has attracted large-scale foreign investment through government subsidies and tax incentives, while demanding business information and even industrial secrets from foreign companies doing business in the country. The report added that it is becoming more and more clear.
According to the Korean newspaper The Hankyoreh, in order to remove China from the semiconductor supply chain and build a safe domestic supply chain, the U.S. government last year was highly sensitive to global semiconductor companies such as Samsung Electronics and SK Hynix. Requested the submission of semiconductor business information. ..
The South Korean industry believes that increasingly hostile US-China tensions are complicating Samsung’s external industrial environment. Especially if the United States is demanding a domestic restructuring of its supply chain, while South Korea is still heavily dependent on China for trade.
Amid deteriorating US-China relations and restructuring of the global supply chain, many South Korean companies are trying to hire former US diplomats to reduce the risk of foreign policy.
Lippert was the US Ambassador to Korea from 2014 to 2017 under former US President Barack Obama. As an ambassador, he has built a reputation for integration with Korean culture.
After the tour, he was Vice President of Boeing International and Senior Advisor to the Center for Strategic and International Studies (CSIS), a US think tank. Most recently, he was appointed Head of Public Policy for YouTube’s Asia Pacific region in June 2020.