Taiwan vows to aid chipmakers overcome difficulties amid China-U.S. trade tensions

Taiwan vows to aid chipmakers overcome difficulties amid China-U.S. trade tensions

Taiwan President Tsai Ing-wen promised on Thursday to aid the island’s key semiconductor industry overcome obstacles and consolidate its leading position, offering support to a sector intensity caught up in China-U.S. trade tensions.

Taiwan Semiconductor Manufacturing Co Ltd, described as the world’s biggest contract chipmaker, are major suppliers to the likes of Apple Inc and Qualcomm Inc, as well as Chinese firms like Huawei Technologies Co Ltd.

In July, TSMC said it had ceased taking new orders from Huawei in May and did not plan to ship wafers after Sept. 15, responding to U.S. curbs on supplying the Chinese company, which the Trump administration views as a security threat.

China, for its part, is attempting to nurture tech champions of its own, such as SMIC, its biggest chipmaker, and cease itself off reliance on U.S. suppliers.

Mr Tsaid said, “Taiwan’s chipmakers were a crucial part of the global supply chain”, in a meeting of semiconductor company agents in Taipei, including TSMC Chairman Mark Liu.

Mr Tsaid hoped the consolidation between of the government and the private sector would boost the competitiveness of the industry in Taiwan, so that it can be a global lead.

On Wednesday, Mr Liu said the deleveraging of China-U.S. supply chains and protectionism on both sides of the Pacific would limit the flow of ideas and push up costs.