US purchases of machines to make computer chips from Taiwan rose to a record in March, as the Biden administration works to reinvigorate the domestic semiconductor industry.
(Bloomberg) — US purchases of machines to make computer chips from Taiwan rose to a record in March, as the Biden administration works to reinvigorate the domestic semiconductor industry.
Taiwan, a global hub for silicon fabrication advances, saw its chipmaking machine exports to the US rise 42.6% in March from a year earlier, reaching a new high of $71.3 million, according to data from its Ministry of Finance. Exports to China, on the other hand, plummeted 33.7%, marking the ninth straight month of decline.
Home to Taiwan Semiconductor Manufacturing Co. and several other major players in the chip sector, Taiwan plays a central role in the global supply chain. Concern about over-reliance on the island, which China claims as part of its territory, prompted steps by US officials to bring more advanced chipmaking within American borders. TSMC is setting up two fabrication plants in Arizona, promoted by subsidies and local government support.
Read more: Biden Gets Victory Lap With $12 Billion TSMC Plant, Arizona Wins
US efforts to limit China’s access to key semiconductor gear, knowhow and products are starting to bifurcate the chip supply chain. Taiwan’s diminishing exports of chip machines to China are one sign of that, while last month, Japan also announced plans for new restrictions on exports of chipmaking gear, seemingly taking aim at the world’s second largest economy.
Read more: US-Japan Alliance to Do ‘Great Harm’ to China’s Chip Ambitions
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