Taiwan and U.S. tensions with China pose ‘serious’ challenges for semiconductor industry, chip maker says

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While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation especially as China steps up military pressure

Rising Taiwan-China and U.S.-China tensions have brought “more serious” challenges for the semiconductor industry, the chairman of Taiwanese chip maker TSMC said on Wednesday.

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.”

The new rules require U.S. companies to cease supplying Chinese chip makers with equipment to make relatively advanced chips, though Washington has granted some non-Chinese companies operating in China one-year licenses.”

 

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