U.S. Sanctions Against China Will Impact Taiwan, So Will CHIPS Act: Official
Recently imposed U.S. sanctions on China’s semiconductor and supercomputer sectors will affect exports from Taiwan, and China’s COVID lockdown will do as well, Taiwan’s economic official reports. . bloomberg (opens in new tab)Additionally, US CHIPS and science laws create uncertainty for the island’s chip makers.
Chinese companies buy a lot of chips from TSMC and UMC. This is because local manufacturers cannot produce chips made in advanced production nodes. Based in China, SMIC’s manufacturing capacity for more or less advanced nodes is fairly limited. But after the U.S. imposed restrictions on China’s supercomputer sector, China-based companies could no longer buy advanced chips made in Taipei using U.S. technology (hence the mature Some of the node-manufactured companion chips are not needed). Affected by TSMC and UMC sales.
TSMC makes high-end AI/ML and HPC processors for companies like AMD, Biren, and Nvidia. With the US imposing restrictions on the Chinese supercomputer segment, Nvidia has come up with a scaled-down version of his A100 computing GPU, called the A800, but it’s too late for Chinese clients to validate it on their systems. takes time. While they do that, Nvidia and his TSMC sales will suffer.
China’s anti-COVID lockdown will also affect sales of Taiwanese chips. This is because the Chinese fabs are producing less and don’t need as many chips as they normally would.
With restrictions on China’s supercomputing sector and lockdowns in China, Taiwan expects gross domestic product growth to slow to 3.06% and 2.75% in 2022 and 2023, respectively, said the directorate of statistics. said Tsai Yu-Tai, Budgets, Accounting, and Statistics.
But while short-term things like lockdowns and restrictions will quickly affect sales of chips made in Taiwan, Taiwanese officials are encouraging companies to build fabs in the United States. I am also concerned about CHIPS and scientific law. This is a similar move by the EU. Taiwan has already responded to both laws with tax cuts for chip makers and tech companies. Still, he worries that the government hasn’t announced any subsidies to semiconductor companies.
“The uncertainty from these actions will affect Taiwan’s production and exports, although the scale of the impact is still unknown,” said Tsai.
