U.S. restrictions on chip exports to China have led some companies to consider shifting some chip manufacturing from China to neighboring countries.

(Associated Press)

[Financial Channel/Comprehensive Report] The United States has restricted chip exports to China, making some companies consider shifting some chip manufacturing from China to neighboring countries, among which Vietnam and India are considered by experts to have lower geopolitical risks and more cost-effective. Alternative Bases Still, experts say China is currently ahead of other emerging markets in terms of chip manufacturing prowess.

"CNBC" reported that KPMG's partner in Singapore, Walter Kuijpers, revealed that its clients and potential clients have recently consulted with KPMG, and the proportion of expanding chip manufacturing in Southeast Asia has increased by 30% compared with before the pandemic. % to 40%.

Quebers said companies see the advantage of diversifying supply chain risk, and recent geopolitical developments are expected to accelerate these already-in-progress strategies.

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Jan Nicholas, executive director of Deloitte who focuses on the semiconductor field, said that Southeast Asia has become a natural choice for industry players who want to move out of China.

Southeast Asia is seen as more attractive than chipmaking powerhouses such as South Korea and Taiwan because the region is considered neutral amid U.S.-China trade tensions, the report said.

However, experts also pointed out that even so, China's competitiveness in chip manufacturing is still ahead of the regional economies. China is not only a major player in this industry, but also an important semiconductor producer, especially in mature manufacturing processes.

Including Chinese facilities owned by non-Chinese companies, China is estimated to be the third-largest chip producer in the world, accounting for a whopping 16 percent, ahead of the U.S. and behind South Korea and Taiwan.

However, there are also some doubts about whether Vietnam and India can become direct beneficiaries of the US restrictions on Chinese chips.

Yongwook Ryu, a researcher on international relations in East Asia at the National University of Singapore, said that Vietnam and India have no advantage in terms of chip manufacturing capabilities. Only countries or companies that can produce high-quality chips at competitive prices can replace China or India. It is the Chinese chip manufacturer that will become the main winner in the future.

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