SEMICONDUCTORS KEY TO SUPPLY CHAIN

[Anchor Lead]

US President Joe Biden has wrapped his trip to South Korea and Japan. The focus of his visit was the launch of an economic security framework. South Korean semiconductors are believed to be the key to a supply chain realignment.

[Pkg]

President Biden’s first destination upon arriving in South Korea was a Samsung chip plant. He said history down the road will be written in the Indo Pacific region and stressed the importance of a future oriented economic alliance.

[Soundbite] Joe Biden(U.S. President)

Earlier in March, to commemorate the 10th anniversary of the KORUS FTA, the U.S. trade representative visited an SK semiconductor plant in Michigan in a symbolic move.

[Soundbite] Katherine Tai(U.S. Trade Representative)

Such moves displayed by Washington bring relations closer between Korean firms and the U.S.

[Soundbite] Erin McGrain(Head of Washington D.C. office for SK)

The U.S.-led Indo-Pacific Economic Framework is seen by some as a way to reestablish supply chains between the U.S. and its allies that leave out China and Russia.

[Soundbite] Andrew Yeo(Korea Chair, Brookings Institution)

The launch of the IPEF will inevitably have a major impact on the rivalry and economic supremacy battle between the US and China. That is why Beijing’s sensitive reaction to the issue was somewhat predicted.