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Business

Time: 2024-05-23

Taiwan's Crucial Semiconductor Industry Faces Uncertain Future Amid China's Rising Influence

Taiwan's Crucial Semiconductor Industry Faces Uncertain Future Amid China's Rising Influence
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Taiwan's semiconductor industry, once known for its 'silicon shield,' is facing an uncertain future as mainland China and the West strengthen their own chip manufacturing capabilities. The geopolitical tensions between Taiwan and China are likely to shift the balance of power in the semiconductor industry. While Taiwan currently dominates the global chip production market, mainland China's investments in chip manufacturing are rapidly increasing. As tensions across the Taiwan Strait escalate, Western countries are looking to diversify their sources of advanced chips away from Taiwan. This trend could potentially reduce Taiwan's share of the chip market to 55% by 2027. Taiwan's top export items include integrated circuits and printed circuits, making it a key player in the global supply chain. However, recent political frictions have led to a decline in trade between Taiwan and mainland China. The United States has also emerged as a major export destination for Taiwan's semiconductor products. Taiwan Semiconductor Manufacturing Company (TSMC) has made significant investments in the US to secure its position in the global chip market. The rise of mainland China's chip manufacturing capacity poses a challenge to Taiwan's dominance, with the mainland focusing on producing mature semiconductors for various electronic devices. Japan is also stepping up its chip manufacturing efforts, aiming to support local companies and build a semiconductor cluster. The US has implemented restrictions on Chinese access to advanced technology, prompting mainland China to invest heavily in its domestic chip production. Despite these challenges, Taiwan is exploring ways to expand its semiconductor industry beyond manufacturing, envisioning a future as a hub for research, development, and technology headquarters. The global semiconductor landscape is evolving, with Taiwan's prized chips facing increasing competition from mainland China and other players in the industry.

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