The US is making broad plans to tackle a seemingly relentless chip crunch and boost supply chain transparency, going so far as to ask semiconductor firms to hand over information about their industry. With Taiwan Semiconductor Manufacturing Co (TSMC) playing a vital role in supplying chips to US heavyweights from Apple to Ford, the government must remain alert to the effects these efforts could have on the nation’s “sacred mountain.”
While there is no need to panic, the government needs to keep a clear head and prepare for new developments to help TSMC and other semiconductor firms stave off the worst effects of the chip crisis, as the US and Europe race to build up their own silicon supply chains.
Late last month, the US Department of Commerce asked firms in the semiconductor supply chain to provide within 45 days information about inventories, demand and delivery dynamics, to help the US understand shortages and identify possible hoarding. US Secretary of Commerce Gina Raimondo said the request was voluntary, but added that she might invoke the Cold War-era Defense Production Act or other tools to force companies to give up that information.
The announcement made waves in Taiwan after a BusinessKorea report said the disclosure of customer information to the US would have serious effects on the industry. The report also said that chip prices might be “significantly affected by disclosure of inventory and production data.” South Korea’s Samsung Electronics and SK Hynix are among the semiconductor firms the US asked to share that information.
Some legislators demanded a government response over concern that TSMC could risk losing its market lead to US rivals once crucial customer and corporate data were revealed. Some Chinese Nationalist Party (KMT) legislators even asked the government to lodge a complaint with the US, saying that it should not leave TSMC in the lurch. The worries are understandable as TSMC is a cornerstone of Taiwan’s economy. With revenue of NT$1.06 trillion (US$38.04 billion) and NT$750 billion of added value created in 2019, TSMC contributed at least 4 percent to Taiwan’s GDP. Any missteps would be costly.
Minister of Economic Affairs Wang Mei-hua (王美花) said the ministry was in close contact with local semiconductor companies and was monitoring the situation, adding that the US was not singling out TSMC. The ministry would promptly provide support as needed, she said.
TSMC said it would not give the US any confidential information about its customers. The chipmaker also said it did not hoard inventory, as it makes chips and builds capacity based on customer demand. The chipmaker also said it would seek government help if needed.
To mitigate the effects of an acute chip shortage, TSMC said it would boost output of microcontroller units, a key component used in vehicles, by 60 percent this year over last year’s level after a meeting with the White House.
It is premature to gauge how the US’ latest efforts to fix the chip crunch would adversely affect local companies. As the world’s top foundry service provider, TSMC should be cautious about its every move, as the global geopolitical crisis is weighing on semiconductor supply chains. With leadership in advanced technologies and strong customer portfolios, TSMC has gained a competitive edge over its rivals.
When it comes to the political front, it is the government’s responsibility to help TSMC and local chip firms handle, or avert, potential political influence, as the impact would be great. The nation’s entire chip industry and economy would be affected.
China’s supreme objective in a war across the Taiwan Strait is to incorporate Taiwan as a province of the People’s Republic. It follows, therefore, that international recognition of Taiwan’s de jure independence is a consummation that China’s leaders devoutly wish to avoid. By the same token, an American strategy to deny China that objective would complicate Beijing’s calculus and deter large-scale hostilities. For decades, China has cautioned “independence means war.” The opposite is also true: “war means independence.” A comprehensive strategy of denial would guarantee an outcome of de jure independence for Taiwan in the event of Chinese invasion or
A recent Taipei Times editorial (“A targeted bilingual policy,” March 12, page 8) questioned how the Ministry of Education can justify spending NT$151 million (US$4.74 million) when the spotlighted achievements are English speech competitions and campus tours. It is a fair question, but it focuses on the wrong issue. The problem is not last year’s outcomes failing to meet the bilingual education vision; the issue is that the ministry has abandoned the program that originally justified such a large expenditure. In the early years of Bilingual 2030, the ministry’s K-12 Administration promoted the Bilingual Instruction in Select Domains Program (部分領域課程雙語教學實施計畫).
Chinese Nationalist Party (KMT) Chairwoman Cheng Li-wun (鄭麗文) earlier this month said it is necessary for her to meet with Chinese President Xi Jinping (習近平) and it would be a “huge boost” to the party’s local election results in November, but many KMT members have expressed different opinions, indicating a struggle between different groups in the party. Since Cheng was elected as party chairwoman in October last year, she has repeatedly expressed support for increased exchanges with China, saying that it would bring peace and prosperity to Taiwan, and that a meeting with Xi in Beijing takes priority over meeting
Philippine Department of Foreign Affairs spokesman for maritime affairs Rogelio Villanueva on Monday said that Manila’s claims in the South China Sea are backed by international law. Villanueva was responding to a social media post by the Chinese embassy alleging that a former Philippine ambassador in 1990 had written a letter to a German radio operator stating that the Scarborough Shoal (Huangyan Island, 黃岩島) did not fall within Manila’s territory. “Sovereignty is not merely claimed, it is exercised,” Villanueva said. The Philippines won a landmark case at the Permanent Court of Arbitration in 2016 that found China’s sweeping claim of sovereignty in
RSS