Seven years in a row, Taiwan’s exports of integrated circuit chips increased in 2022, further establishing the country’s economic dominance in the world’s semiconductor market, which has been shaken by US-China tensions and supply chain diversification.
According to Taiwan’s Ministry of Finance, IC chip exports, which are essential parts of electronic devices like computers, smartphones, and appliances, increased by 18.4% from a year earlier. Additionally, it was the third consecutive year of a double-digit increase.
The output of titans like Taiwan Semiconductor Manufacturing Co.(TSMC), which holds more than half of the global semiconductor manufacturing market share, is what gives Taiwan its relevance in the sector. Taiwan’s exports have been driven by global semiconductor sales at a time when a global decline in demand has put tremendous strain on international trade.
Depending on where semiconductor fabrication factories are built, according to a Taiwanese analyst, the industry’s future of diversity will be determined. They noted probable plans for TSMC to construct facilities in Singapore and Japan, a recent investment by Intel Corp. in Vietnam, and plans for Foxconn and Vedanta Resources Ltd. in India as actions that could have long-term effects on the sector.
TSMC Aims At Aggressive International Expansion in the Upcoming Years
TSMC has also kept up with its aspirations to expand its international footprint. A plant “focusing on automotive-specific technologies” may be built by the company in Europe, but TSMC’s CEO C. C. Wei said that would depend on customer demand and government assistance.
In an effort to diversify its production locations, the corporation stated last year that it would more than increase its investment in TSMC Arizona to $40 billion. The measure was warmly embraced by the Joe Biden government in the United States, which is working harder than ever to secure access to semiconductors and shield citizens from geopolitical repercussions.
TSMC’s investment choices, like its landmark facility in Arizona, its first advanced chip production in the US, help to maintain Taiwan’s importance to nations like the US.