A senior U.S. official said South Korea can do a lot more in regards to reorganizing the global semiconductor supply chains.

Jose Fernandez, the under secretary of state for economic growth, energy and the environment, made the remark at the opening of the allies' Sixth Senior Economic Dialogue(SED) in Seoul on Friday.

During talks with Second Vice Foreign Minister Choi Jong-moon, Fernandez took note of South Korea's world-class technical experts and transparent investment law in the sector, expecting enormous value from working with the country.

Stating that the U.S. prioritizes linking foreign policies with demands of American laborers, Fernandez said it is the Joe Biden's administration's foreign policy vision to provide new jobs and opportunities through trade and investment.

The comments are in line with Washington's efforts to exclude China from semiconductor supply chains amid the rising Sino-U.S. rivalry, while encouraging more investment from South Korean companies.

Referring to the U.S.-led Indo-Pacific economic framework, which includes supply chain resiliency as well as cooperation in other areas like climate change, the vice minister promised Seoul's active participation as a U.S. ally.