The US-China Chip War and Prospects for South Korea-India Semiconductor Cooperation

The US-China chip war is becoming more intense as both countries understand the significance of semiconductors for their economic security and national defense. As a result of nationalist and unilateral actions taken by the US and China under the chip war, other Asian economic powerhouses are reassessing their semiconductor strategies, leading to new opportunities for semiconductor partnerships in Asia among middle powers. South Korea, a leading semiconductor power in Asia, is facing critical challenges amid the chip war, that, in turn, resulted in reshaping its trade and overseas production strategies that are heavily reliant on China. To maintain its semiconductor dominance and ensure economic security, Korea is adopting new approaches such as export and production diversification. In the meantime, India, amid the ongoing US-China tech war, is also seeking to construct a resilient supply chain and decrease its reliance on China for imports. In the process, New Delhi is looking to develop its semiconductor industry and build chip ties with like-minded countries in production and workforce development. This opens up significant prospects for Korea-India semiconductor partnerships. This paper proposes three areas where Korea and India could collaborate: semiconductor trade partnerships, semiconductor production partnerships, and semiconductor workforce collaboration. By doing so, it highlights how the US-China chip war is creating new opportunities for other Asian economic powerhouses to collaborate in the semiconductor industry. This paper also provides insights for policymakers to set a new agenda for India-Korea partnerships as both countries celebrate the 50th anniversary of their diplomatic ties in 2023.