Taiwanese contract chipmaker TSMC stated on Tuesday that the company has discussed with its clients moving its fabrication units off the island in light of the rising tensions with China, even though such a move would not be feasible.
TakeAway Points:
- Taiwanese contract chipmaker TSMC has held talks with its customers about whether to move its fabrication plants off the island amid increased tensions with China, although such a move would be impossible, a senior executive said on Tuesday.
- Taiwan’s defence ministry announced on Tuesday that it has discovered another Chinese “joint combat readiness patrol” that included 23 warships and planes flying close to Taiwan.
TSMC Discusses moving Fabrication Units
After TSMC’s annual shareholder meeting in Hsinchu, the company’s headquarters, Chairman C.C. Wei told reporters that it would be hard to relocate the facilities because 80%–90% of the company’s production capacity is located in Taiwan.
“Unstability across the Taiwan Straits is indeed a consideration for supply chain, but I want to say that we certainly do not want wars to happen,” Wei told reporters after the company’s annual general meeting.
Taiwan’s defence ministry announced on Tuesday that it has discovered another Chinese “joint combat readiness patrol” that included 23 warships and planes flying close to Taiwan.
At this week’s annual Computex technology trade expo in Taipei, growing tensions between China and Taiwan were a hot topic of conversation, while some Taiwanese chipmakers tried to downplay the geopolitical implications.
“Nobody is worried about this yet,” Frank Huang, chairman of Powerchip Semiconductor Manufacturing, told reporters at the event, when asked whether foreign customers were putting pressure on Taiwan firms not to produce there given the tensions.
“I think of course there is always military activity, or showdowns, but again, Taiwan is so important to AI – even the Chinese know that. We are OK, no problem,” he said.
Taiwan Global Chip Impact
Advanced Micro Devices Chief Executive Lisa Su also reiterated the importance of Taiwan in the global chip supply chain when asked about how tensions with China and its war games could affect the industry.
“We do a lot of our manufacturing here with key suppliers like TSMC… And then we also have a number of partners that help us build out the ecosystem here in Taiwan. The bottom line from our perspective is that it’s really important to have a global ecosystem,” she told reporters at the show on Monday.
TSMC plans Chipmaking Facilities Abroad
Late last month, a senior government official said Taiwan Semiconductor Manufacturing Company’s (TSMC) plan to relocate some of its chipmaking facilities overseas will be “very beneficial” for the country because it will enable the chipmaker to work more closely with customers and aid in attracting the best talent.
As TSMC establishes factories abroad, concerns about Taiwan’s manufacturing dominance waning have seeped into local commentary and appeared in opinion pieces in newspapers. Being the largest contract chipmaker in the world, Apple and Nvidia are dependent on TSMC for their key products. The island’s vital role in the semiconductor supply chain is considered a crucial component of its global security.
