FAB4: Strengthening the Global Semiconductor Supply Chain and Korea’s Response

Yeon Wonho

(yeonwonho@gmail.com)       

Head of Economic Security Team,

Korea Institute for International Economic Policy ​ 

English Abstract

FAB4 is a working-level consultative body proposed by the U.S. to discuss △ supply network cooperation △ human resource development cooperation △ mutual investment incentive cooperation △ R&D cooperation with Korea, Japan and Taiwan. The U.S. excluded China from FAB4, but it seems that it has no intention of directly checking or sanctioning China with FAB4. Recently, the U.S. has strengthened its own export control and investment sanctions against the Chinese high-tech semiconductor sector. The problems that South Korea now face are caused by the excessive U.S. sanctions and strengthened legal systems in order to curb China and China’s unfair pursuit of technology—not by FAB4 itself. It is rather necessary for South Korea to minimize the damage to Korean semiconductor companies by actively utilizing controversial bodies such as FAB4.