Bloomberg reported that the U.S. government emphasized the danger of relying too much on Taiwan's chips, making Taiwanese officials uncomfortable, and has urged the U.S. to lower its volume through private communications.

(Reuters)

[Financial Channel/Comprehensive Report] Foreign media revealed that in the face of China's threat to Taiwan, the US government emphasized that it is very dangerous to rely too much on Taiwan's chips.

"Bloomberg" reported that what Taiwanese officials are most concerned about is that US Secretary of Commerce Gina Raimondo once said that the US's dependence on Taiwan's chips is "untenable" and "unsafe". Representative Michael McCaul, chairman of the House of Representatives Foreign Affairs Committee, expressed concern about Taiwan's chip industry.

McCall called Taiwan's semiconductor industry a strategic asset that is "very vulnerable to an invasion" and stressed that the "window is closing and we are running out of time" for the U.S. to move the chip supply chain out of Taiwan.

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The report pointed out that Taiwan officials are facing a difficult problem, not only to maintain Taiwan's status as a 90% advanced chip producer in the world, but also to attract allies to provide military and diplomatic support to deter the CCP from invading Taiwan.

However, it is very dangerous for the United States to shout that it is too dependent on Taiwan's chips. It really makes Taiwanese officials uncomfortable. They have already urged the United States to say a few words through private exchanges and secret channels.

In response to Taiwanese officials’ concerns, U.S. Department of Commerce officials stated that the U.S. will continue to cooperate with Taiwan and other allies to diversify and strengthen supply chains, including increasing investment and trade with Taiwan.

The official emphasized that the current firm support of the United States for Taiwan is the unanimous position of the Democratic and Republican parties.

Vice Foreign Minister Li Chun also said in an interview last week that the U.S. government's public statements are one thing, and that the White House actually understands Taiwan's current political and economic situation very well.

He urged the United States to find "the right balance" between strengthening the resilience of the semiconductor industry by setting up factories around the world, and concentrating factories in a few countries to improve efficiency.

Li Chun said that the scale of the "Chip Act" passed with bipartisan support in the United States is relatively small, and the United States is aware of this.

"This is not a plan to make the U.S. the center of global semiconductor manufacturing. The manufacturing center is still in Taiwan."

As for TSMC, Gong Mingxin, chairman of the National Development Council, who is a director of TSMC, emphasized that companies understand that as long as there is no war, if they do not place orders with TSMC, they may fall behind competitors who place orders with TSMC. Transfer of orders due to risks that may not necessarily occur".

Analysts’ views on TSMC support Gong’s assessment.

Thirty-nine of 40 analysts covering TSMC stock have a buy rating or the equivalent for the world's largest chip maker, the highest ratio in 20 years, according to data compiled by Bloomberg Intelligence.

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