Wednesday, May 19, 2021

Implications of US-China Tech War for Taiwan’s Semiconductors Industry

Recommendable! Very impressive the Taiwanese semiconductor industry! 

Will the Taiwanese people be ready to destroy their semiconductor industry in case of an invasion by the Communist Party of China?

"Against the backdrop of worsening US-China relations, Taiwan’s semiconductor industry—including Taiwan Semiconductor Manufacturing Corp. (TSMC), which is the world’s largest contract chip manufacturer—has garnered unprecedented attention over the past year ... Others focused on how TSMC surpassed competitors such as Samsung and Intel to become the world’s most advanced semiconductor manufacturing firm, making it also a key chokepoint in producing cutting-edge devices such as the latest iPhones and PCs, but also US military-use chips critical to American security. ...
Recent automotive chip shortages have highlighted how important TSMC is to global industrial activity, for about 70 percent of the microcontroller units used in the world’s automobiles are manufactured by the firm. ...
The production value of Taiwan’s semiconductor industry stood at USD $115 billion in 2020, ranking second in the world and accounting for 19.7 percent of the global total. Taiwan today is home to not only TSMC, but also other semiconductor industry leaders such as: MediaTek , the world’s largest smartphone chipset vendor, which surpassed US firm Qualcomm to become the world’s biggest smartphone chips supplier in the third quarter of 2020; ASE Group, the world’s largest provider of outsourced semiconductor manufacturing services in assembly and testing; and GlobalWafers, which will become the world’s second largest supplier of silicon wafers if it successfully acquires German firm Siltronic. ...
China’s large market is still a fertile breeding ground for TSMC’s competitors, accounting for 36 percent of the global semiconductor market. SMIC today is already the world’s 5th largest semiconductor contract manufacturer, while Hua Hong ranks at a distant 9th place. Paired with the inability of many Taiwanese semiconductor firms to deal with Chinese clients as the result of US restrictions, it seems only a matter of time before SMIC and other Chinese competitors capture more domestic market share. Over $20 billion worth of Taiwanese electronics (including semiconductors) were shipped to China in 2020, and more were directly manufactured by Taiwanese firms based in China. ...
This wave of US anxiety has played a role in TSMC’s recent investment in a USD $12 billion factory in Arizona. ..."

Vol. 6, Issue 10 – Global Taiwan Institute

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