Taiwan’s government said on Saturday that Taiwanese semiconductor firms place “great importance” on following the law and that they would abide by new U.S. export restrictions designed to stifle China’s chip sector.
The administration of President Joe Biden’s guidelines, which were unveiled on Friday, contains a provision to cut off China from specific chips produced anywhere in the globe using American machinery, greatly extending its reach in an effort to halt Beijing’s scientific and military advancements.
Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world and a significant supplier to businesses like Apple Inc., is based in Taiwan, a country that produces a lot of chips.
Taiwan’s economy ministry stated in a statement in reaction to the U.S. declaration that Taiwanese businesses adhered to the law.
“Taiwan’s semiconductor industry has long served global customers and attaches great importance to compliance with laws,” it said.
According to the ministry, the government remains in regular communication with manufacturers and encourages them to invest in the expansion of their factories and deliver goods to markets across the world for technical advancement.
TSMC refused to comment on the American regulations, claiming that it was a quiet time before its quarterly reports the next week. Prior to the announcement of its earnings later this month, the smaller competitor United Microelectronics Corp. similarly declined to comment.
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Taiwan has its own concerns about China, particularly the attempts made by Chinese businesses to snatch up technical know-how and semiconductor expertise. China, Taiwan’s main commercial partner, has stiff restrictions on Taiwanese investment.
Taiwan’s concerns have grown as China conducts frequent military exercises close to the island in an effort to pressure Taiwan into recognising Beijing’s sovereignty.
(with inputs from agencies)
