Jensen Huang (ジェンスン・フアン) allegations make South Korea's two-track AI strategy between the US and China even more difficult? ... "Demands for semiconductor investment are ongoing"

Following reports of allegations involving NVIDIA CEO Jensen Huang (ジェンスン・フアン) and Chinese espionage, momentum has gathered in the US Congress to tighten semiconductor export controls on China. South Korea is also being affected by developments on the US side and is closely monitoring 3 bills, including controls on exports to China: the AI Surveillance Act, Chip Security Act and MATCH Act. The bills are expected to be incorporated into amendments to the Senate's National Defense Authorization Act, and specific responses are still considered to be at an early stage.

Pressure to increase investment in semiconductor production facilities in the United States continues. The South Korean government conveyed the explanation of an official who said that "we should secure domestic production from countries we can trust." At the same time, some have pointed out that tighter US regulations could restrain South Korean companies' expansion of production in China, and that delays in bringing in equipment could affect their capital deployment plans.

South Korean companies participating in the US-led restructuring of supply chains are said to need to invest in the United States while maintaining production in China. Reuters reported that approval to bring US-made equipment into a South Korean company's factory expansion in Dalian, China, was on hold, and reported that companies operating in South Korea viewed the situation as "a difficult juncture in the semiconductor sector, which lies at the heart of the US-China struggle for supremacy."

Multiple media outlets, including the Japanese edition of JoongAng Ilbo, reported similar content through external links. The responses of the South Korean government and companies are expected to be the focus going forward.