It is already a reality: The US has decided to further limit the sale of semiconductor and chip manufacturing technology to China. The objective is none other than to slow down and hinder the progress of Chinese military programs, as well as to block the access of China’s domestic surveillance system to advanced computing functions -which for its operation needs chips last generation-. And in the midst of all this, where is another of the main affected agents, that is, Taiwan?
The island government has opted, once again, for the American side and not for the Chinese. The main Taiwanese companies have already spoken: compliance with the law is of “great importance”, so will accept the new US export controls. Although this, of course, cuts the technological and military advances of China itself.
This posture is of great depth. Do not forget that Taiwan is a major world technology center and a leading chip producer.. In fact, it is the headquarters of Taiwan Semiconductor Manufacturing Co (TSMC), which is the world’s largest contract chip manufacturer and a major supplier to companies such as Apple.
Own Taiwan’s Ministry of Economy did not hesitate to comment on the recent decision of the Joe Biden government: “Taiwan’s semiconductor industry has long served global customers and attaches great importance to compliance with laws (…) in addition to complying with national laws and regulationsalso cooperate with the needs of international customers who place orders and customer standards in their countries.
The US and Taiwan continue to approach positions, also, technological
Needless to say, today – and nothing is expected to change in the short term – Taiwan continues to maintain an advantage over the competition in the set of international orders, as stressed by the ministry itself. East maintains very close contact with manufacturers of chips, supporting them in investments for the expansion of their factories and for the international supply of products.
TSMC, for the moment, has been more cautious and has refused to comment on the new rules coming from the United States. Neither has another major company in the sector, United Microelectronics. Both have experienced profits in the last quarter after the serious chip crisis experienced in 2021 and part of 2022. Of course, TSMC has sunk 8.3% on the stock market after the announcement of the new US rules.
All this happens in a complicated context. Where Taiwan government strictly restricts Taiwanese chip investment in China, the largest trading partner of the island. And where Taiwan’s own Economy Minister, Wang Mei-hua, will visit the United States soon, displaying the good harmony between the two to discuss issues such as “concerns” about supply chains and geopolitical problems. As well as visiting American technology companies, the main customers of Taiwanese semiconductor companies.
