Tensions in chip race fuel as Trump takes office
Date
11/13/2024 4:24:21 AM
(MENAFN) The chip tensions among China, the US, as well as Taiwan have been fueling in the latest years, and following President-elect Donald Trump’s victory in the past week, the US is expected to achieve a main position in the chip market.
Based on the latest reports, Taiwan Semiconductor Manufacturing Company (TSMC) reportedly discovered one of its chips in an artificial intelligence (AI) product from the Chinese tech company Huawei, escalating tensions as Huawei remains on the US restricted list.
The US Department of Commerce ordered the TSMC to stop deliveries of high-technology chips to China on Saturday.
The TSMC declared that it would cease 7-nanometer or tinier chip sales to Chinese chip design companies starting on Monday, based on a report by the Chinese site Ijiwei, whereas the South China Moring Post (SCMP) released that Huawei stated it is not making chips via the TSMC due to the restrictions.
Taiwan is expected to make the most chips in the world with a 68 percent market share in chip manufacturing in the previous year, based on data from the Visual Capitalist website, and the nation’s manufacturing capacity is expected to fall to 60 percent in the next three years because of the US advances to bring chipmaking home.
At the man time, the US is expected to produce a big leap in chipmaking in 2027 with a surge in manufacturing from 12 percent to 17 percent, derived from the CHIP and Science Act of 2022, and President-elect Trump’s possible future moves towards improving domestic chip manufacturing.
Taiwan’s biggest customers involve the US tech giants Nvidia and Apple.
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