A senior U.S. official said cooperation with South Korea is critical for the United States to establish stable supply chains for semiconductors and advanced batteries. 

Deputy Secretary of Commerce Don Graves made the remarks on Wednesday in a webinar hosted by the Center for Strategic and International Studies, a U.S. think tank based in Washington.

Graves defined semiconductors as an essential element for national security and economic competitiveness, saying that a chip shortage causes layoffs and a delay in economic recovery and threatens the U.S.' long-term leadership. 

The deputy secretary said it's critical that the U.S. works with its allies like South Korea to make its supply chains for critical products like semiconductors and advanced batteries more resilient.

He stressed that South Korea is an "absolutely vital partner" on the issue, noting that the Asian ally accounts for 16 percent of the global semiconductor value chain.