Stranglehold: The Story Of Silicon Capture In Asia

The views and opinions expressed in this commentary are those of the authors and do not reflect the official position of the Daily Caller.
Relentless China
Warfare has entered a new phase. Technology is now critical and the front line of this new war is South Korea. There is a disturbing trend that forewarns us that the Chinese Communist Party (CCP) has fully recognized this shift. Beijing is currently executing a pincerlike movement designed to hollow out South Korea’s high-tech industries and absorb them into China’s own vast industrial and military ecosystem. If successful, this takeover will give Beijing control over semiconductors and advanced materials that power the American economy and its military complex.
In October 2025, during the Fourth Plenary Session of the 20th Central Committee, Beijing unveiled a new national blueprint. They called it doctrine. It sounds like a standard bureaucratic slogan doesn’t it? In fact, it announces a wartime doctrine for technological and economic independence. (RELATED: Money, Politics And The Wealth Of Nations)
This initiative marks a fundamental shift in China’s economic model. They are pivoting away from mass production towards absolute control over The CCP is pouring state resources into achieving total self-sufficiency in semiconductors, artificial intelligence, biomanufacturing and quantum computing.
This is a direct response to U.S. sanctions. Beijing has realized that reliance on western technology is a strategic vulnerability. Their solution is to build a fortress economy where China controls the entire supply chain, from raw materials to finished microchips.
The Familiar Big Steal
But where does South Korea fit into this vision of overall domination? Beijing aims to neutralize and command U.S. technological alliances in Asia. If Korean technology becomes dependent on Chinese standards and inputs, then South Korean technologies will be successfully absorbed. What a prize! South Korea has world-beating semiconductor and battery sectors and so it is a primary target for absorption.
China is stealing the talent they need because it cannot innovate fast enough on its own. We have uncovered an aggressive, state-sponsored recruitment campaign targeting South Korean engineers and researchers. Chinese universities and state-backed research institutes are offering salaries three to four times higher than the Korean market rate. They promise guaranteed career security and unlimited research grants. The Chinese are specifically targeting specialists in semiconductor physics, advanced automated manufacturing and sensor technology.
We can think of this as intellectual property theft in slow motion — not just a labor market issue. Every Korean engineer who defects to a Chinese laboratory takes years of know-how and trade secrets with them. This is eroding Korea’s competitive edge but that’s far from the end of it.
The technology developed in Seoul with American partnership is being transferred to Beijing where it will probably power the next generation of Chinese weapons systems. Also, Korean products developed in China accelerate China’s ability to bypass U.S. export controls. The exports from the U.S. can be addressed to Korea but in reality they will end up in China. This route may have less stringent rules and give the Chinese an advantage in selected cases.
Trouble Ahead for South Korea
Beijing’s antics are a pull on America, and it’s pushing back with new regulations.
For example, the U.S. previously introduced a . This regulation — currently paused until November 2026 after America negotiated with China — stipulated that any global joint venture with more than ownership by a blacklisted Chinese entity would be subject to U.S. sanctions. This regulation applied regardless of where the company operates. (RELATED: The One Hundred Billion Dollar Hostage)
This spells trouble for Korean firms if it comes back into effect. The major Korean companies in the battery and semiconductor sectors are deeply intertwined with Chinese partners who supply raw materials and chemical precursors. They are in a If they maintain their partnerships with China, they risk being cut off from U.S. markets and any technological developments. On the other hand, if they sever ties with China, they face immediate retaliation from Beijing and a collapse of their supply chains. Korean companies are being squeezed between American regulation and Chinese coercion. Many choose China over America — it is the path of least resistance and proximity plays a part.
Trouble Ahead for America
Why should we care about Korean high-tech companies? It is mostly about dependence on chips, the semiconductors that are at the core of our modern world’s activities. The U.S. military complex depends on chips, as do many other sectors in today’s societies. Modern warfare relies on advanced electronics in missiles, radar systems, fighter jets and communication networks that all require secure, reliable components. South Korea is a linchpin of the global semiconductor supply chain. If Korea’s technology sector is swallowed into China’s ecosystem, then the U.S. Defense Industrial Base (DIB) faces a critical security breach.
Let’s imagine the following dangerous scenarios: When a Korean manufacturer becomes subordinate to Chinese technology or supply chains then this introduces the risk of munitions, like rockets, malfunctioning when used in combat. This is because contaminated or compromised parts could enter the U.S. defense supply chain indirectly from China through Korea. Furthermore, if Beijing controls the flow of materials to Korean chipmakers, they gain veto power over the production of essential components needed by the free world. A disruption in Korean chip output would ground American jets, cut off American satellites and much more in the commercial sector.
Finding Joint Solutions
We cannot stand idly by and allow the very core technologies that powered South Korea’s economic rise to become war trophies for the CCP.
As the U.S. works to systematically sever China from critical global supply chains, a massive materials vacuum has emerged. South Korea is already a dominant global player in shipbuilding, defense, semiconductors and nuclear energy. The country is uniquely positioned to fill this gap as the premier alternative to supply the U.S. from Asia. Far from being a regulatory burden, the represents a golden opportunity for South Korea to catapult its national economic power to the next level. (RELATED: The Chinese Trap Sprung On America In South Korea)
To create a sense of and become indispensable to Washington, South Korea needs to realign its R&D investments to protect source technologies. It also needs to create strict supply chain diversification targets to break Chinese mineral dependence. Finally, South Korea’s top-tier talent needs to be retained, by using powerful incentives to get these innovators to stay.
The solution lies with the firm political resolve and action by the South Korean government and its corporate leaders. They need to recognize that their world is now engulfed in a war with China.
Washington is already fighting this war. For its part, Washington should accelerate legal frameworks to stop the leakage of sensitive technology and human capital to China. If the leakages continue then America might as well be aiding and abetting a future adversary. The technological war is raging and one of the most important battles for the future is being fought in the industrial centers and laboratories of Seoul. With so much at stake, losing is not an option.