Taiwan will employ a US-led chip alliance to defend local companies

• Taiwan will use the new “Chip 4” group led by the United States.
• It will protect the interests of Taiwanese businesses.
• Furthermore, it will guarantee supply chain resilience.

According to a deputy minister, Taiwan will use the new “Chip 4” group led by the United States to protect the interests of Taiwanese businesses and guarantee supply chain resilience, albeit he acknowledged that the organization as of yet has no agenda.

Representatives from Taiwan, the United States, South Korea, and Japan attended the group’s first meeting last week.

Supply chain management has become more of a priority for governments all over the world as a result of a global scarcity of semiconductors, which has put chip giant Taiwan in the limelight.

Chen Chern-chyi, Taiwan’s deputy economics minister, told reporters in Taipei on Wednesday that cooperation was necessary to create a “highly resilient supply chain” for the semiconductor industry.

He stated, “We will utilize that platform to attempt to protect the interests of our companies,” but noted that the organization had not yet had formal meetings.

Taiwan’s president, Tsai Ing-wen, has urged allies to increase cooperation in the face of escalating Chinese threats and stated that Taiwan is committed to ensuring that its friends have a stable semiconductor supply.

Taiwan, which is democratically run, is considered Beijing’s own country. China’s claims of sovereignty are denied by Taiwan’s government.

Asian members of the “Chip 4” group are home to the largest contract chip manufacturer in the world, Taiwan Semiconductor Manufacturing Company, as well as South Korean and Japanese semiconductor equipment and material suppliers Samsung Electronics and SK Hynix.

The group’s formation follows the passage of a new US law in August that contains $52 billion in subsidies for businesses that manufacture chips or carry out chip research in the US, as Washington seeks to reduce US dependence on Asia for semiconductors.

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