China-U.S. Trade War: Taiwan promised to Support Chipmakers industry
Taiwan President Tsai Ing-wen promised on Thursday to help the island’s key semiconductor industry conquer problems and consolidate its leading position, providing support to a business increasingly caught up in China-U.S. trade pressures.
Companies such as the world’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd, are major suppliers to the likes of Apple Inc and Qualcomm Inc, in Addition to Chinese firms including Huawei Technologies Co Ltd.
In July, TSMC said it had stopped taking new orders from Huawei in May and didn’t plan to ship wafers following Sept. 15, reacting to U.S. curbs about providing the Chinese firm, which the Trump administration views as a security threat.
China, for its part, is hoping to nurture technology winners of its own, such as SMIC, its biggest chipmaker, and wean itself off reliance on U.S. suppliers.
Taiwan’s chipmakers are a crucial part of the global supply chain, Tsaid informed a meeting with semiconductor company agents in Taipei, including TSMC Chairman Mark Liu.
Also read | Best free business phone services
“We attach great value to this strategic business, and will actively assist the industry in solving problems, to carry on to combine the advantages of Taiwan’s semiconductor business, and to accelerate development and transformation,” the presidential office cited Tsai as stating.
Turning Taiwan to an innovative semiconductor processing center is a key government effort, she added.
“The focus of future growth comprises localisation of material supplies, technology autonomy, localisation of foreign equipment production, and localisation of innovative assembly equipment.”
The policies will be embraced one by one, to ensure”more abundant technical energy” for the business and also a complete industrial supply chain to enhance its key international function, she added.
Tsai expected the joint efforts of the government and the private industry would increase the competitiveness of this business in Taiwan, so it can be a worldwide bellwether.
On Wednesday, TSMC’s Liu stated the deleveraging of China-U.S. distribution chains and protectionism on both sides of the Pacific would simply drive up prices and limit the circulation of ideas.