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

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