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Investigative Report on the US Semiconductor and Battery Supply Chains: Key Points and Implications

Author

Listed:
  • Lee, Jun

    (Korea Institute for Industrial Economics and Trade)

  • Kyung, Heewon

    (Korea Institute for Industrial Economics and Trade)

  • Lee, Sungkyung

    (Korea Institute for Industrial Economics and Trade)

  • Lee, Go Eun

    (Korea Institute for Industrial Economics and Trade)

Abstract

On June 4, 2021, the U.S. White House released a report assessing its supply chains in four critical areas: semiconductors, batteries, pharmaceuticals, and rare-earth minerals. The report included policy recommendations for securing competitiveness in the above sectors. The report’s authors found that domestic supply chains were weakening, especially in the assembly, testing, and packaging (ATP) processes and critical materials. And given these deficiencies, the authors argued that it is necessary to build more advanced production facilities to secure industrial hegemony in the semiconductor sector. Since American tech policy can have significant influence on Korea’s strategic industries, the Korean government needs to prepare and utilize effective counterstrategies. This paper assesses the risks posed by the new American strategy and suggests measures to respond to those risks.

Suggested Citation

  • Lee, Jun & Kyung, Heewon & Lee, Sungkyung & Lee, Go Eun, 2021. "Investigative Report on the US Semiconductor and Battery Supply Chains: Key Points and Implications," i-KIET Issues and Analysis 21/14, Korea Institute for Industrial Economics and Trade.
    • Handle: RePEc:ris:kietia:2021_014
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    More about this item

    Keywords

    supply chains; competition; competition policy; advanced technology; technological hegemony; competitiveness; US; Korea; semiconductors; artificial intelligence; AI; supply chain competitiveness; industrial hegemony; economic security; national security; innovation; innovation policy;
    All these keywords.

    JEL classification:

    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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