Rising Taiwan- and U.S.-China tensions are causing “more serious” challenges for the semiconductor industry, the chairman of Taiwanese chipmaker TSMC said on Wednesday.
While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation – sandwiched between its largest export market China and its main international backer and arms supplier, the United States – especially as Beijing steps up military pressure to force Taipei to accept Chinese sovereignty claims.
Speaking at the Taiwan Semiconductor Industry Association’s annual convention, TSMC Chairman Mark Liu said: “The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry.”
Liu said he looked forward to Taiwan’s industry, government and academia developing “more concrete, constructive measures” on industrial policies related to innovation, research, talent education and retention “to maintain Taiwan’s most critical semiconductor industry advantages”.
While Liu did not make direct mention of it, the sweeping set of export controls announced by the United States this month, aimed at slowing China’s progress in advanced chip manufacturing, is expected to also impact Taiwanese chipmakers.
The new rules require U.S. companies to cease supplying Chinese chipmakers with equipment to make relatively advanced chips, though Washington has granted some non-Chinese companies operating in China one-year licenses.”
MacDailyNews Take: Yup.
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