The United States and China’s relationship regarding the semiconductor industry is complex. The US wants to maintain its technological dominance and is imposing sanctions on China, but it also wants access to China’s profitable market. Rather than completely disconnecting from China, the US is focusing on “de-risking.” However, there are ongoing conflicts between the two countries that are unlikely to change soon, creating uncertainties in the global supply chain.
The US has implemented control measures such as export restrictions on advanced semiconductor chips and adding Chinese companies to a trade blacklist. US allies like the Netherlands and Japan are also regulating the export of semiconductor equipment. Additionally, the US issued an executive order requiring investments in China’s semiconductor industry, quantum computing, and AI to be reported, with certain transactions potentially facing prohibitions.
The US is planning to limit China’s chip-making capabilities and is considering constraints on Samsung and SK Hynix to prevent them from expanding production. However, there is pushback from the Semiconductor Industry Association (SIA) and major US manufacturers who argue that these actions could harm domestic investments and research and development in the US. They believe exporting chips to China supports US companies and maintains their edge in advanced technology.
Industry players like Intel, NVIDIA, and Qualcomm have asked the US government to suspend new export bans on China. The US strategy also requires collaboration with allies like South Korea, which has investments in China’s chip manufacturing. The impact on Taiwan’s semiconductor industry is expected to be limited, but caution is needed in responding to future market dynamics.
If the US’s semiconductor control policies are too broad and unclear, it may escalate tensions and prompt countermeasures from China. Taiwan’s semiconductor industry should be cautious in navigating these market dynamics.
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