Taiwan seeks resilient provide chain for semi conductors amid tensions with China | Ground Report

Amid Chinese intimidation, Taiwan is on the lookout for alternate websites to fabricate semi conductors and a resilient international provide chain. The island is in talks with India to fabricate the chips in India to interrupt the Chinese stranglehold round Taiwan.

India Today spoke to Gabriel Chou, deputy venture director, Macronix worldwide, one of many largest semi conductor producers in Taiwan, on how the agency goals to keep up a resilient provide chain.

More than one lakh persons are engaged in built-in circuit manufacturing in Hsinchu Science Park, positioned 80 kms from Taipei.

“We work with our customers. We prepare raw materials early to ensure smooth production. A major proportion of our raw materials come from Japan. But, semi conductors need a global supply chain for raw materials. To ensure resilient supply, we prepare in advance. From raw material to finished product, there are thousands of manufacturing steps and if one step goes wrong the production has to be stopped,” Gabriel Chou advised India Today.

“We ensure we have a proper reservoir of raw materials needed to manufacture semi conductors. That is the key,” he added.

READ | Why Taiwan’s chips might be on the centre of rising US-China pressure

Taiwan manufactures near 90 per cent of semi conductors utilized in electronics. These chips energy a lot of the world’s daily-use digital gear, corresponding to laptops, watches and video games consoles.

The US, different Western nations and the Taiwan Semiconductor Manufacturing Corp (TSMC) have been frightened in regards to the eventualities if China goes for an invasion and cuts off provides of chips which can be essential to the worldwide economic system.

TSMC is likely one of the key producers of silicon chips. TSMC-made chips are utilized in nearly 60 per cent of smartphones.

US House Speaker Nancy Pelosi, whose go to to the island sparked offended reactions from China, had pushed for a TSMC unit in Arizona. It is more likely to begin operations in 2024.

If there’s a disruption in TSMC’s operations amid tensions with China, the world could find yourself dropping provide of round 60 to 70 per cent of cellphone and laptop chips.

— ENDS —