Taiwan vows to guard company pursuits in U.S.-led ‘Chip 4’ group By Reuters

© Reuters. FILE PHOTO: Semiconductor chips are seen on a pc circuit board on this illustration photograph taken February 25, 2022. REUTERS/Florence Lo/Illustration

TAIPEI (Reuters) – Taiwan will use the brand new U.S.-led “Chip 4” group to guard Taiwanese enterprise pursuits and guarantee provide chain resilience, a deputy minister stated on Wednesday, though he added that the group didn’t but have an agenda.

A preliminary assembly of the group passed off final week with the participation of representatives from Taiwan, the US, South Korea and Japan.

A worldwide scarcity of semiconductors has thrust Taiwan into the limelight and made provide chain administration a better precedence for governments world wide.

Taiwan’s Vice Financial system Minister Chen Chern-chyi informed reporters in Taipei that chipmaking required collaboration to make sure a “very resilient provide chain”.

“We’ll use this platform to try to guard the pursuits of our corporations,” he stated, however added that the group had not began formal conferences.

Taiwanese President Tsai Ing-wen stated the island is dedicated to making sure companions have a dependable provide of semiconductors and urged allies to strengthen collaboration within the face of escalating Chinese language threats.

Beijing claims democratically-ruled Taiwan as its personal territory. The Taiwan authorities rejects China’s sovereignty claims.

The Asian members of the “Chip 4” group are house to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd, South Korean reminiscence chip giants Samsung Electronics (OTC:) Co Ltd and SK Hynix, in addition to main Japanese suppliers of semiconductor supplies and tools.

The group’s creation additionally follows new US laws handed in August that features $52 billion in grants for corporations that manufacture chips or conduct chip analysis in the US, as Washington seeks to scale back reliance. from the US to Asia for semiconductors.

Requested about the US’ want to scale back its dependence on manufacturing in Taiwan, Chen stated Taiwan’s chip trade has a well-integrated provide chain and an excellent workforce.

“From the federal government’s perspective, we consider that Taiwan’s benefit and benefit in growing probably the most superior manufacturing know-how will all the time be right here in Taiwan.”

However the authorities is blissful to see Taiwanese chip corporations investing in like-minded international locations, he added.

“We consider this can solely deepen and strengthen our relationship.”