U.S. says promoting chip cooperation with Taiwan is a priority

Powerchip Semiconductor Manufacturing

25/03/2021 06:04

TAIPEI, March 25 (Reuters) - The United States and Taiwan
are natural partners when it comes to semiconductors and
promoting this cooperation is a U.S. priority, the de facto U.S.
ambassador in Taiwan said on Thursday.
    Washington has increasingly viewed tech-powerhouse and
democratically ruled Taiwan as a key part of its strategy to
shift global supply chains away from China, especially when it
comes to technology and chip companies.
    Speaking at the groundbreaking ceremony for a new chip
fabrication plant for Powerchip Semiconductor Manufacturing Corp
 6770.TWO  in central Taiwan, Brent Christensen, director of the
American Institute in Taiwan (AIT), said he was there "to
restate the U.S. government's focus on supply chain security".
    "Both President Biden and President Tsai have rightly
identified the semiconductor industry as a key strategic
priority, not only for economic innovation, but also national
security," he said, according to a transcript of his comments
provided by his office.
    Christensen pointed to last year's launch of the U.S.-Taiwan
Economic Prosperity Partnership Dialogue as a way the two can
"build a coalition to counter the PRC's unfair economic and
investment policies", referring to the People's Republic of
China.  
    "The United States and Taiwan are the globe's most natural
partners in the semiconductor supply chain with an abundance of
companies across the value chain, and it will continue to be an
AIT priority to support this cooperation."
    Taiwan President Tsai, attending the same event, said she
would guarantee that the government will fully support the
development of the semiconductor industry, describing it as a
"mountain range protecting the country".
    Taiwan's central role in producing chips has shot into focus
during the COVID-19 pandemic, with soaring demand for laptops,
tablets and other equipment to power the work-from-home trend
benefiting firms like Taiwan Semiconductor Manufacturing Co Ltd
(TSMC)  2330.TW   TSM.N , the world's largest contract
chipmaker.
    Foreign governments and companies have also beseeched Taiwan
to help resolve a shortage of auto chips which have idled
factories around the world.  urn:newsml:reuters.com:*:nL1N2K3031
    U.S. companies are not standing still either, and this week
Intel Corp  INTC.O  announced a $20 billion plan to expand its
advanced chip manufacturing capacity.

 (Reporting by Ben Blanchard; Editing by Christopher Cushing)
 ((ben.blanchard@thomsonreuters.com;))