Taiwan promises to safeguard local chipmakers at US-led Chip 4 group

By Ayushi Garg  | Date: 2022-10-06

Taiwan promises to safeguard local chipmakers at US-led Chip 4 group

Chen Chern-chyi, Deputy Minister of Economic Affairs in Taiwan, reported that the country is expected to use the new Chip 4 group, led by the US, to protect Taiwanese enterprises interests and ensure supply chain resilience, while he admitted that the organization did not yet set a specific agenda.

Representatives from Taiwan, South Korea, the United States, and Japan attended the groups first meeting recently. Notably, a global shortage of semiconductors has brought Taiwan, the home of the chip industry, to the forefront and increased the importance of supply chain management for governments worldwide.

He stated that chip manufacturing needed coordination to maintain a highly resilient supply chain. He further added that the group has not begun official meetings but indicated that they would utilize the platform to work to protect their companies interests.

Tsai Ing-wen, President of Taiwan, has urged allies to step up cooperation in the face of rising Chinese threats, stating that Taiwan was committed to ensuring that its partners have a steady semiconductor supply.

It is worth mentioning that democratically governed Taiwan was declared by Beijing as its own territory. Moreover, the Taiwanese government rejected Chinas sovereignty claims.

Taiwan Semiconductor Manufacturing Co. Ltd., the worlds largest contract semiconductor company, South Korean memory chip behemoths - SK Hynix Inc. and Samsung Electronics Co. Ltd., and prominent Japanese manufacturers and suppliers of semiconductor equipment and materials, are among the Asian members of the Chip 4 group.

The formation of the group also coincides with the passage of a new U.S. law in August that contains USD 52 billion in subsidies for companies that manufacture or undertake chip research in the United States, as Washington seeks to reduce the countrys reliance on Asia for semiconductors.

When asked about the US desire to minimize its reliance on Taiwanese manufacturing, Chen stated that Taiwans semiconductor industry has a tightly integrated supply chain and exceptionally strong manpower.

Source Credit: https://www.yahoo.com/news/taiwan-says-protect-firms-interests-043912993.html

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Ayushi Garg     aeresearch.net

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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