Taiwan says will use US-led chip alliance to protect local firms

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The deputy economy minister says the chip industry requires cooperation to ensure a “very resilient supply chain.”

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The vice minister said Taiwan will use the new US-led Chip 4 group to protect the interests of Taiwanese companies and ensure the sustainability of the supply chain, although he added that the group does not yet have an agenda.

Last week, a preliminary meeting of the group was held with representatives from Taiwan, the United States, South Korea and Japan.

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The global semiconductor shortage has caught the attention of Taiwan, a chip maker, and has made supply chain management a higher priority for governments around the world.

Taiwan’s vice minister of economics, Chen Chern-Chi, told reporters in Taipei on Wednesday that the chip industry requires cooperation to ensure a “very resilient supply chain.”

“We will use this platform to protect the interests of our companies,” he said, but added that the group had not yet begun formal meetings.

Taiwan’s President Tsai Ing-wen said the island is committed to providing its partners with a reliable supply of semiconductors and called on allies to intensify cooperation amid rising threats from China.

Beijing considers democratically ruled Taiwan to be its territory. The Taiwanese government rejects China’s claim to sovereignty.

The Asian members of the Chip 4 group are home to the world’s largest contract chip manufacturer Taiwan Semiconductor Manufacturing Company, South Korean memory chip giants Samsung Electronics and SK Hynix, and key Japanese suppliers of semiconductor materials and equipment.

The creation of the group also comes on the heels of a new US law passed in August that provides $52 billion in subsidies to companies that make chips or conduct chip research in the United States as Washington seeks to reduce US dependence on Asia for semiconductors.

Credit: www.aljazeera.com /

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