Integrated circuits on a circuit board.
filonmar | E + | Getty Images
Taiwan hopes to give China a run for its money – at least in the short term.
The island’s economy minister told CNBC that Taiwan will remain competitive in the semiconductor space, even as China increases its chip ambitions.
Wang Mei-hua, head of the Ministry of Economic Affairs, told Taiwan Semiconductor Manufacturing Company that the world’s largest manufacturer of contract chips is “globally competitive in foundry manufacturing due to their technical progress.”
“Taiwan will continue to develop our semiconductor industry. In the short term, I think we will remain competitive,” she told CNBC’s Emily Tan on Wednesday.
Asked whether China’s efforts to develop its semiconductor industry are of concern to Taiwan, she stressed that Taiwan’s chip manufacturing sector has been developing for several decades and is strong.
“We have a very efficient production base,” she said, translating her comments into Mandarin.
Global lack of semiconductors
Wang also said that Taiwanese companies are doing their best to fulfill orders for car chips amid a global shortage.
Covid-19 blockages created an increase in demand for consumer electronics last year, which triggered a shortfall in the semiconductor sector. As a result, some car manufacturers have been forced to reduce or slow down production.
Our chip manufacturers are already producing at full capacity … by providing more car chips, it is not only helping the global car industry, but also the global economic recovery.
Wang Mei-hua
Taiwan’s head of the Ministry of Economic Affairs
Demand for car chips fell in April 2020, but rose in August and September, Wang said.
“It’s not easy to make chips. It doesn’t come out the day after you place an order,” she explained. “When orders for car chips were discontinued, other orders for information and communications technology came in and took over.”
“Our chip manufacturers are already producing at full capacity,” she said. “But we have had discussions with them, they are aware that by providing more car chips, it is not only helping the global car industry, but also the global economic recovery.”
Taiwan and its chip suppliers also met with the United States for talks. “I think Taiwan is very willing to be a friendly partner in the supply chain in the semiconductor space,” she added.
Optimistic about Taiwan’s economy
Wang was optimistic about the outlook for Taiwan’s exports, which have benefited from growing demand for laptops due to blockages and workplace arrangements.
“From August to January this year, our exports have grown dramatically for six consecutive months. This has never happened before,” Wang said.
Reuters reported that Taiwan’s exports rose nearly 37 percent year-on-year in January to $ 34.27 billion, the highest monthly figure.
“So far, our exports have gone very well – not only in our high technology, but also in many other sectors, including textile petrochemicals, machinery,” she said. “Global inventories have fallen and the economy is recovering, even our shipbuilding business is growing at double digits. Here we are now.”
– CNBC’s Arjun Kharpal and Michael Wayland contributed to this report.