On 17 April 2025, the South Korean Ministry of Foreign Affairs announced that it has reached an agreement with the Netherlands to enhance supply chain cooperation in the field of semiconductors and critical minerals, including establishing an information sharing system between its overseas missions. According to the statement made by the Ministry; the parties reached an agreement during the bilateral economic dialogue meeting held in The Hague under the chairmanship of South Korean Deputy Foreign Minister Kim Hee-sang and his Dutch counterpart Michiel Sweers. The two countries agreed to launch an ‘early warning system’ for semiconductor supply chains and will regularly exchange information on the supply chain status of chips, critical minerals and other important materials.[1]
This cooperation increases the competition in global semiconductor markets and constitutes a stabilizing factor for South Korea’s dependence on China. Moreover, this cooperation plays a critical role not only in terms of the development of economic relations between the two countries, but also in terms of technological competition between great powers in the context of global balance of power. This is because semiconductors are used in areas such as artificial intelligence and the defense industry, and provide great advantages in establishing technological dominance. The cooperation between South Korea and the Netherlands on semiconductors offers an alternative to the technology sector where the United States of America (USA) and China stand out.
In December 2023, South Korean President Yoon Suk Yeol and Dutch Prime Minister Mark Rutte adopted a joint declaration codifying the “semiconductor alliance” at a summit in The Hague during Yoon’s state visit to the Netherlands.[2] This alliance, which was launched two years ago, aims to promote cooperation between governments, the private sector and academic institutions. It has also set the stage for joint educational and technological collaborations by activating regular dialogue mechanisms.
These semiconductor materials are also used in the production of chips, today’s strategic technology. At the centre of the global chip wars is “Advanced Semiconductor Materials Lithography (ASML)”, which is a Netherlands-based company. This company is the only company in the world that develops and manufactures advanced lithography machines used in chip production. Thanks to the agreement on semiconductors, South Korea’s easier access to ASML with its manufacturers such as Samsung and SK Hynix will enable it to be a strong competitor to Taiwan in chip production. Although South Korea is in partnership with the USA, it will have the opportunity to adopt a more independent foreign policy by increasing its own production capacity through technology-oriented agreements with the Netherlands.
Indeed, as a geopolitical move, this agreement between the two countries will enable them to gain a place among the great powers. South Korea, which relies on the support of the US in the field of security due to threats originating from North Korea, has created an area where it can make technological breakthroughs independently. It will also reduce its dependence on China in chip exports.
On the other hand, the Netherlands has a distinct position in the field of technology within the European Union (EU). Thanks to its cooperation with ASML and South Korea, it reinforces Europe’s technological independence and will be able to follow a more independent approach that prioritizes its own economic interests in technology restrictions against China through ASML due to US pressure.
This position of the Netherlands sets an example for the surrounding countries in terms of becoming technology centres. Within the EU, technology-based joint ventures such as establishing chip production facilities, artificial intelligence or quantum technology are occasionally on the agenda. Thus, it is important to build the centre-periphery relationship towards a structure based on mutual cooperation rather than one-way.
When the impact of South Korea’s direct cooperation with ASML on regional activities in Asia is considered, it is seen that it has the effect of undermining the power and superiority of Taiwan Semiconductor Manufacturing Company (TSMC), the semiconductor manufacturer that is Taiwan’s security card, and the countries that support it. Besides, it is quite possible that Japan, which conducts some studies on semiconductors, may see the South Korea-ASML cooperation as a challenge.
To conclude, while the Netherlands stands out not only economically but also technologically and diplomatically in the EU with its ASML technology, South Korea, while maintaining close relations with the West, is advancing in an area where it can make independent decisions and contribute to its development. By combining their medium-scale technologies, both countries are creating a space where they can gain a place among the great powers and thus increase their ability to act more independently in foreign policy.
Thanks to its relations with South Korea, the Netherlands adopts a more flexible multilateral diplomacy not only within the EU but also at the international level. Likewise, South Korea, as a country located in the Asia-Pacific, has adopted a multilateral and flexible diplomacy not only with actors such as the US and China, which play an active role in the region, but also with the EU, especially through dialogues in the field of technology. Therefore, both countries have set an example for many countries by creating spaces that transcend their regions without being stuck in their geopolitical positions.
[1] “S. Korea, Netherlands agree to boost cooperation in semiconductor supply chain”, Yonhap News Agency,https://en.yna.co.kr/view/AEN20250417004700315?section=national/diplomacy, (Date of Access: 19.04.2025).
[2] “S. Korea, Netherlands agree to establish ‘semiconductor alliance’ in summit”, Yonhap News Agency,https://en.yna.co.kr/view/AEN20231213010300315, (Date of Access: 19.04.2025).
