Taiwan hopes to give China a chance for its money, at least in the short term.
The island’s economy minister told CNBC that Taiwan will remain competitive in the semiconductor space, even as China increases its chip ambitions.
Wang Mei-hua, head of the Ministry of Economic Affairs, noted Taiwan Semiconductor Manufacturing Company and said the world’s largest contract chip maker is “globally competitive in foundry manufacturing due to its technical advances.” .
“Taiwan will continue to develop our semiconductor industry. In the short term, I think we will remain competitive,” CNBC’s Emily Tan said Wednesday.
Asked whether China’s drive to develop its semiconductor industry is of concern to Taiwan, she noted that Taiwan’s chip manufacturing sector has developed over several decades and is strong.
“We have a very efficient manufacturing base,” he said, according to a translation of his comments into Mandarin.
Global shortage of semiconductors
Wang also said Taiwanese companies are doing their best to meet car chip orders amid a global shortage.
Last year, Covid-19 blockades created an increase in demand for consumer electronics, which led to a deficit in the semiconductor sector. As a result, some vehicle manufacturers have been forced to reduce or slow down production.
Our chip manufacturers already produce at full capacity … supplying more car chips, not only helps the global auto industry, but also the global economic recovery.
Wang Mei-hua
Head of Taiwan’s Ministry of Economic Affairs
Demand for auto chips fell in April 2020, but picked up strength in August and September, Wang said.
“It’s not easy to make tokens. It doesn’t come out the next day after you place an order,” he explained. “When the automatic chip orders were cut, other information and communications technology orders that occupied the capacity came in.”
“Our chip manufacturers are already producing at full capacity,” he said. “But we’ve had discussions with them. They’re aware that by supplying more car chips, it’s not only helping the global auto industry, but also the global economic recovery.”
Taiwan and its chip suppliers have also met with the US to discuss. “I think Taiwan is very willing to be a kind partner in the supply chain in the semiconductor space,” he added.
Optimistic about Taiwan’s economy
Wang was optimistic about the outlook for Taiwan’s exports, which benefited from growing demand for laptops due to locks and work agreements from home.
“Since last August and until January of this year, our exports have increased dramatically for six consecutive months. This has never happened,” Wang said.
Reuters reported that Taiwan’s exports rose nearly 37% year-on-year in January to $ 34.277 billion, the highest monthly figure on record.
“So far, our exports have gone very well, not only in our high technology, but also in many other sectors, including textile petrochemicals, machinery,” he said. “Global inventories have fallen and the economy is recovering. Even our shipbuilding business is growing in double digits. This is where we are right now.”
– CNBC’s Arjun Kharpal and Michael Wayland contributed to this report.