By Bolaji Ojo
What’s at stake:
China’s claim over Taiwan is creating a negative effect the communist nation may not want. Signs are emerging that Taipei is warming to the idea of TSMC setting up more overseas fabs, possibly depriving China of future access to the foundry’s world-class semiconductor fabrication plants. Western fabless IC suppliers will have more sourcing options, but at a higher price. Is the tradeoff going to be worth it?
If China has its eyes on Taiwan’s jewel semiconductor fabs – in addition, of course, to reunifying the island and mainland – it is going about it in a way that may produce the opposite result.
In the last week, the Communist nation has ringed Taiwan with warships, battle aircrafts, naval assault ships, and military personnel, all in a bid to reinforce its opposition to any move towards independence by Taipei.
There are implications for the island’s technology industry, especially its world-leading semiconductor manufacturing ecosystem. China’s threats may have finally spurred the government in Taipei to greenlight a major move it had previously opposed: the establishment of more fabs by Taiwan’s top chipmaker in locations outside the island.