The US sanctions on advanced semiconductors and gear as well as the ongoing weaker demand in PCs and smartphones have weakened the Chinese imports
Flouting the slump in the international semiconductor market, Taiwan increased its export of chips to the US for a consecutive 26 months. According to a Bloomberg report, there is an escalation of 9 percent in terms of the US buying Taiwanese chips, while a survey from the Ministry of Finance in Taipei revealed that shipments to Hong Kong and China reduced to 14.3 percent.
Because of this scenario, there is an 8 percent decline in the overall exports of Taiwanese chips, while a month back, it was 7.1 percent. Taipei’s Finance Ministry also added that back in May, the island country shipped around $91 million worth of semiconductor machineries and equipment to Hong Kong and China, which is down to 44.2 percent compared to the previous year. On the other hand, exports of gear to the US increased by 59.3 percent.
This scenario is highlighting the fact that there will be a speedy growth of the US semiconductor industry as the country has been unleashing various schemes and initiatives to magnetize investments in advanced semiconductor manufacturing. Now, the US sanctions on advanced semiconductors and gear as well as the ongoing weaker demand in PCs and smartphones have weakened the Chinese imports.
Despite this slump, China still retains the spot of largest buyer of chips from Taiwan. The Bloomberg report added that Taiwan’s exports share rose to 2 percent points to nearly 54 percent in May 2023. The executives of TSMC have recently opined that the demand for chips is likely to perk-up in the second half of this year, but the situation will remain a bit skeptical on consumer spending and a bumpy recovery of China’s economy post-Covid.
The international semiconductor manufacturing industry is still dominated by Taiwan. Around 48 percent of the semiconductor foundry market in 2022 is dominated by the island country. Taiwan is also leading 61 percent of international capacity to manufacture chips or something more advanced.
