Lu Kexiu, chairman, president and CEO of Diodes, a US-listed semiconductor supplier, said that due to the continued tension in US-China relations, global companies must be prepared to have Chinese and non-Chinese supply chains in the future.

(Extracted from the official website of Chenggong University)

[Compilation of Lu Yongshan/Comprehensive Report] Lu Kexiu, chairman, president and CEO of Diodes, a semiconductor supplier listed on the Nasdaq stock exchange in the United States, recently accepted an interview with "Nikkei News" Global companies must be prepared to have Chinese and non-Chinese supply chains in the future.

Lu Kexiu said that chip companies must also admit that political factors are gradually taking precedence over commercial considerations when making decisions about investment locations and so on. Business thinking and the pursuit of low cost doesn’t always work.”

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　He pointed out: "If chip security is equal to national security, then no matter how difficult it is, every country wants to take full control, as long as they have the ability to do so. Looking ahead, from the United States and Japan to Germany and China, these major economies will only will want to speed up the move to onshore wafer production.”

　Lu Kexiu said that Taiwan has the world's second largest semiconductor industry by revenue and must maintain its technological advantages to ensure the security of its own supply chain.

　He also described the future that awaits chipmakers: "If the production is in China, it will serve the local Chinese market. If the production is in a non-Chinese location, it will serve the rest of the world. Such a split may not happen overnight. happening, but businesses have to be able to do that to operate in the new environment."

　Lukesio said the U.S.-China tensions that prompted the change would not go away, and geopolitical tensions between the two powers would certainly persist.

　Lu Kexiu was born in Tainan in 1946. He graduated from the Department of Electrical Engineering of Chengda University and obtained a Ph.D. from the Department of Electrical Engineering of Texas Tech University. He has been involved in the chip industry since 1973. He was a senior executive of Texas Instruments and became the chairman and CEO of Dahl Technology in 2005. Under his leadership, Dahl Tech's revenue will grow from $214.8 million in 2005 to $1.8 billion in 2021.

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