Taiwan’s semiconductor industry set to suffer after US/China trade disputes

Share

During the semiconductor shortage if there’s one thing we learned it’s that Taiwan has an absolute stranglehold on the chip production market. If you want to get specialised chips made with the latest technology then it’s very likely you’re going to do it in Taiwan. The country makes up 64% of the global foundry market with heavy hitters like TSMC pumping out chips for all sorts of huge companies. However, changes coming from the United States could spell changes for this dominance, and it’s going to be interesting to watch.

A Bloomberg (opens in new tab)report (via Tom’s Hardware (opens in new tab)) states that a combination of the changes in sanctions from the United States towards China as well as Chinese Covid lockdowns could spell big changes according to a Taiwanese economic official. Given China spends a pretty penny on chips from Taiwanese manufacturers, there’s expected to be a significant economic downturn thanks to the American influence.