U.S. Sanctions Against China Will Impact Taiwan, So Will CHIPS Act: Official

The recently imposed U.S. sanctions against Chinese semiconductor and supercomputer sectors will affect exports from Taiwan, and so will Chinese COVID lockdowns, warned a Taiwanese economic official, reports Bloomberg (opens in new tab). In addition, the U.S. CHIPS and Science Act poses uncertainty to the island’s chipmakers.

Chinese companies buy a boatload of chips from TSMC and UMC, as local makers cannot produce chips made on advanced production nodes. China-based SMIC’s manufacturing capacity for more or less advanced nodes is reasonably limited. But after the U.S. imposed restrictions on the Chinese supercomputer sector, China-based companies cannot buy advanced chips made in Taipei using American technologies (and therefore, they do not need some of the companion chips fabbed on mature nodes), sales of TSMC and UMC will be affected.

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