Taiwan produces some of the most advanced computer chips in the world and the Taiwanese chip companies fear that one day China will carry out its threat to conquer Taiwan, among other things by opening factories in other countries. Until now we knew about the USA. Now India also enters the picture
Taiwan is seeking to build a flexible global supply chain and alternative semiconductor manufacturing sites amid ongoing tensions with China. The island is also in talks with India about moving semiconductor production there to break China’s stranglehold over chip factories. As you remember, India wants to see itself as a chip powerhouse and it was recently reported that the cumulative revenue of India’s chip component market will rise to $300 billion by 2026.
News site India Today spoke to Gabriel Chu, deputy project manager of Taiwanese chip maker Macronix, about how the company strives to maintain a flexible supply chain.
“We work with our customers. We prepare raw materials early to ensure smooth production. A large part of our raw materials comes from Japan. But, semiconductors need a global supply chain for raw materials. To ensure durable supply, we prepare in advance. From raw material to finished product, there are thousands of production steps and if one step goes wrong, production must be stopped,” he said.
More than 150,000 people are engaged in the production of integrated circuits in the Hsinchu Science Park, located 80 km from Taipei.
Meanwhile, tensions between the US and China have risen since Beijing held massive military exercises in retaliation for US House Speaker Nancy Pelosi’s visit to Taiwan earlier this month.
Along with South Korea, Taiwan produces some of the smallest and most advanced computer chips in the world – a commodity that is essential for electronics but in short supply around the world.
Taiwan lives under the constant threat of invasion by China, which claims that the island as part of its territory will one day be seized – by force if necessary.