This report explores the semiconductor industry in South Korea and the Netherlands in a global context and offers recommendations for furthering collaboration.
Recent years have seen increasing economic and technological separation between the United
States and China, often referred to as ‘decoupling’. In a bid to restrict China’s access to sensitive technology, the United States recently introduced new export controls for semiconductor technology. The US is exerting pressure on the Dutch government to comply with these rules, thus posing a challenge for the Netherlands because of its substantial economic ties with China. South Korean chip firms have also been caught in the fray. Similar to the Netherlands, South Korea’s heavy reliance on China as its largest trading partner has made it increasingly difficult to balance its interests.
Bilaterally, both the Netherlands and South Korea are heavily invested in improving their position in the semiconductor industry, indicating an alignment in political goals as well as their complementary roles in the industry. Moreover, both countries have attempted to shift away from China-based dependencies, once again showing political alignment in terms of both economic and national security goals. Both countries are, therefore, in an excellent position to deepen their ties and promote cooperation.
However, the current political climate in the Netherlands poses a significant risk. Increasing hostility towards ‘internationalization’ in higher education and removing incentives for skilled foreign talent form risks for semiconductor companies based in the Netherlands, which rely heavily on this pool of workers for their operations. It seems that current political actors in the Netherlands are overlooking the long-term risks associated with isolating Dutch higher education from international talent, thereby destabilizing the supply of skilled workers to the domestic semiconductor industry.
