Taiwan says 'key position' in semiconductors won't be shaken as US passes chip act

Two chips are on display at the Taiwan Semiconductor Research Institute (TSRI) in Hsinchu
Two chips are on display at the Taiwan Semiconductor Research Institute (TSRI) in Hsinchu, Taiwan, February 11, 2022. REUTERS/Ann Wang

TAIPEI, July 29 (Reuters) - Taiwan's "key position" in making semiconductors will not be shaken and production on the island is the most efficient way of doing things, the Economy Ministry said on Friday in response to the U.S. Congress passing a major new chips act.

The U.S. House of Representatives passed the sweeping legislation on Thursday to subsidise the domestic semiconductor industry as it competes with Chinese and other foreign manufacturers. read more

Taiwan is a major chip producer, home to Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW), the world's largest contract chipmaker, which is also investing $12 billion in a new plant in Arizona. read more

The Economy Ministry noted that it is "happy to see" Taiwanese firms being able to access "resources on the ground" when they operate around the world, and to establish good relations in the U.S. supply chain.

At the same time, Taiwan is an advanced global semiconductor manufacturing centre with the most resilient and competitive production model, it added.

"After 50 years of continuous innovation, investment and generations of talent, our country's semiconductor manufacturing efficiency, supply chain integrity and innovation energy have always been at the world's top, and Taiwan's key position in semiconductors will not be shaken."

Taiwan has always been a partner of the world, as shown by its efforts to alleviate auto chip supply chain problems, and the "made in Taiwan" model of manufacturing semiconductors is the most efficient and reliable way of doing things, it said.

"Whether in the past, present or future, Taiwan will continue to play the role of an indispensable partner in the global supply chain."

Taiwan has been keen to show the United States, its most important international backer at a time of rising military tensions between Taipei and Beijing, that it is a reliable friend as a global chip crunch impacts auto production and consumer electronics.

But Taiwan's government is also determined to keep the majority of advanced chip manufacturing at home.

China had lobbied against the U.S. semiconductor bill, calling it reminiscent of a "Cold War mentality" and "counter to the common aspiration of people" in both countries.

Reporting by Taipei newsroom; Writing by Ben Blanchard; Editing by Kirsten Donovan

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