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SKorean Chipplant is a model of deeper connection with Asia – Daily Local

By AAMER MADHANI and JOSH BOAK

South Korea, Pyeongtaek (AP) — President Joe Biden begins a trip to Asia on Friday to tour the South Korean computer chip factory, which is a model for the Texas factory, to show how deep his relationship with India is. bottom. The Pacific Ocean can drive innovation and promote vibrant democracy.

“Much of the future of the world will be written here in the Indo-Pacific over the next few decades,” Biden said. “This is, in my opinion, the moment to invest in each other to deepen business relationships and bring people closer together.”

Biden’s message was proposed to promise a better global tomorrow, but as it seeks to show that his administration is contributing to the economy, it is a domestic political challenge (inflation rate due to tip shortage). Was also directed to US voters in the midst of rising).

Biden’s first visit to Asia as president was in the presidency, with Biden’s U.S. approval rate of 39%, according to the Associated Press’s poll center, the NORC Public Relations and Research Center, announced Friday. It was the lowest in. The survey also found growing pessimism about the US economy and condition, especially among Democrats.

About two in ten adults in the United States said the country is heading in the right direction, or the economy is good, down from about three in ten in April. Only 33% of Democrats say the country is on the right track, down from 49% last month.

Samsung, the owner of a South Korean chip factory, announced plans to open a $ 17 billion semiconductor factory in Texas last November. Last year’s semiconductor shortage compromised the availability of automobiles, kitchen utensils and other commodities, increased inflation around the world and undermined Biden’s official approval among US voters. The president said the Texas plant will add 3,000 high-tech jobs and construction will include union labor.

“These little chips are the key to driving us in the next era of human technology development,” he said after a tour of the factory.

The President seeks to promote greater business cooperation between democracies with overlapping values, which is globalized in a way that benefits U.S. workers and leads to increased foreign investment in the U.S. We see it as a way to maintain the profits of the economy. He, along with Hyundai Motor Group Chairman, emphasized the company’s decision to invest in a new electric vehicle and battery manufacturing facility in Savannah, Georgia.

Biden argues how the United States, which can work with its closest allies, will be stronger at home and abroad through a five-day visit to South Korea and Japan. Biden did not mention China, which has emerged as a major competitor to the United States, in a statement on Friday, emphasizing the value of the alliance, which is currently excluding the country.

At the factory, Biden was greeted by South Korea’s new president Yun Seok-yul and Samsung Electronics’ vice chairman Lee Jae-yong. Yun is a newcomer to the presidency in the first election this month. He took a stricter stance on North Korea and campaigned to strengthen its 70-year alliance with the United States.

Before Biden said, Mr. Yun said he hopes the US-Korea partnership will develop into an “economic and security alliance based on cooperation between advanced technology and supply chains.”

The chip factory showed a bit of the unique nature of manufacturing, as visitors had to wear white lab coats and blue boots to keep the facility clean. Biden and Yun, who are not wearing protective clothing, saw a demonstration of the machine.

At some point during the tour, Biden received a detailed description of the KLA inspection system on Samsung’s factory floor. Based in California, the company is a major supplier of Samsung’s semiconductor business. After a worker named Peter explained the inside and outside of the machine, Biden advised him “remember to vote” when he returned to the United States.

Finally, Mr. Biden thanked Mr. Moon for former South Korean president Moon Jae-in, who had been in office for several years before Yun’s recent elections. Biden immediately fixed the slip-up.

“President Moon Jae-in, thank you for everything so far,” Biden said.

Part of the shortage of computer chips is the result of strong demand as much of the world has emerged from the coronavirus pandemic. However, virus outbreaks and other challenges have also caused the closure of some semiconductor plants. US government officials estimate that chip production will not be at the level they want until early next year.

According to the Semiconductor Industry Association, global computer chip sales totaled $ 151.7 billion in the first three months of this year, up 23% from the same period in 2021.

Over 75% of the world’s chip production comes from Asia. This is a possible vulnerability that the United States wants to protect through more domestic production. The bill, which is being negotiated by Congress, has $ 52 billion worth of government investment in this sector.

The risk of China’s invasion of Taiwan could block the flow of high-end computer chips needed for military equipment and consumer goods in the United States. Similarly, closed-type North Korea is testing ballistic missiles in the midst of a coronavirus outbreak, which could pose a risk to South Korean manufacturing if brinkmanship escalate.

In chip production, China leads the world with a 24% share, followed by Taiwan (21%), South Korea (19%) and Japan (13%). According to the Semiconductor Industry Association, only 10% of chips are manufactured in the United States.

Samsung announced its factory in Tailor, Texas in November 2021. The operation is scheduled to start in the latter half of 2024. South Korea’s leading electronics companies chose their sites based on factors such as government incentives and the “preparation and stability” of local infrastructure.

The White House said in a fact sheet that semiconductor companies have announced nearly $ 80 billion in US investment by 2025. This total includes a $ 20 billion expansion to Intel’s factories outside Columbus, Ohio, up to $ 30 billion by Texas Instruments, and a $ 1 billion expansion by Wolfspeed. Investment by Newyork, GLOBALFOUNDRIES and SK Group.

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Washington Associated Press author Darlene Superville contributed to this report.

SKorean Chipplant is a model of deeper connection with Asia – Daily Local

Source link SKorean Chipplant is a model of deeper connection with Asia – Daily Local

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