Business News Asia
Taiwan will use the new U.S.-led Chip group to protect the interests of Taiwanese companies and ensure supply chain resilience.
The first meeting of the group was held last week. Representatives from Taiwan, the USA, South Korea and Japan took part.
A global semiconductor shortage has put Taiwan’s chip powerhouses in the spotlight, making supply chain management more important to governments around the world.
Chen Chern-chyi, Deputy Minister of Economy of Taiwan said, “Chip manufacturing requires cooperation to ensure that the supply chain is highly flexible.”
Taiwan’s President Tsai Ing-wen said the island wants to ensure its allies have reliable semiconductors and called on allies to promote cooperation in the face of massive threats from China.
The Chip 4 group in Asia includes the world’s largest chipmaker Taiwan Semiconductor Manufacturing Co Ltd, South Korean memory chip giants Samsung Electronics Co Ltd and SK Hynix, as well as a major material supplier and Japanese semiconductor equipment.
The group’s formation also comes after the passage of a new U.S. law in August that provides $52 billion in subsidies to companies that produce chips or conduct chip research in the United States. That’s because Washington wants to reduce Asia’s dependence on U.S. semiconductors.