Taiwan should enter the global Semiconductor front against China, appeal

Taipei: Analysts in Taiwan appealed that trade with China is declining after China lost Western countries’ confidence in the Huawei matter. Therefore, semiconductors, necessary in the manufacture of defence equipment and cars, are falling short in the market. This is a huge opportunity for Taiwan; it should leverage it to enter the global supply chain for the semiconductors, being created against China, to take the lead in the technology sector.

Other than the United States, countries- Japan, South Korea, China, Singapore and Taiwan in the Asia-Pacific sector, are the exporters of semiconductors, used in defence equipment and cars’ manufacture. It is claimed that China has huge investments, even in the US semiconductor sector. But following the espionage accusations against Huawei, last year, the demand for Chinese semiconductors declined rapidly. The demand for Chinese electronic products also is declining.

At the same time, there is a major shortage of semiconductors in the international market. Trade representative for Taiwan, John Deng claimed that in this scenario, other countries would not ignore Taiwan for a long time. Deng pointed out that Taiwan can supply the semiconductors required in the automobile industry. In January, Germany had asked Taiwan Semiconductor Manufacturing Company (TSMS) for the supply of semiconductors. Deng reminded that the United States and Japan also were in dialogue with the TSMC.

Wang Che-Chen, analysts at the Institute for National Defence and Security Research, linked to the Taiwan government, also said that this is a huge opportunity for Taiwan to increase its share in the global supply chain for semiconductors. Products like semiconductors have become a cause for concern on the political, defence and military levels. Therefore, economically prosperous countries are allowing semiconductor manufacturing companies to setup their projects in the country. Wang suggested that Taiwan should take advantage of the situation and increase its semiconductor exports.

Meanwhile, analysts in the United States appeal that the Biden administration should formulate a semiconductor front with like-minded countries. It has not been revealed as to what stand will the Biden administration take on this front. But Wang appealed that Taiwan should definitely join the front against China.