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Taiwan To Help US Solve Chips Crisis But Warns Of ‘Unreasonable Demands’

The White House has asked auto firms and chip manufacturers to share information on the shortage that has hit US auto production – and to find a solution

The chip shortage has forced halts in auto production and on white goods production lines. Reuters photo.

 

Taiwan has vowed to aid the US in solving the worldwide chips crisis but has also promised it will stand by its tech firms if they face with “unreasonable requests” from Washington.

Taipei said it respects US commercial law and rules but will help Taiwanese companies if necessary, after the United States pressed firms to provide information on the semiconductor crisis.

The White House asked automakers, chip companies and others last week to provide information on the chip shortage that has forced cuts to US auto production, and to take the lead in helping to solve it.

 

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Secretary of Commerce Gina Raimondo said a voluntary request for information within 45 days on the chips crisis would boost supply chain transparency and that if companies did not answer the voluntary request “then we have other tools in our tool box that require them to give us data.”

Taiwan’s Economy Ministry, responding to the US demand, said present practice was for companies to voluntarily provide information and that this was not only aimed at non-US companies. Taiwan is a major semiconductor maker.

The ministry, led by its minister Wang Mei-hua, has talked directly to companies about the issue, it added.

“Moreover, the Taiwanese and US governments have established multiple channels of communication and have a smooth flow of information. Taiwan respects and understands US commercial laws and regulations,” the ministry said.

 

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“If our companies face unreasonable demands in international competition, the government will certainly provide necessary assistance and express concern to prevent Taiwanese companies from fighting alone in the international arena.”

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chip maker, took part in the White House meeting.

It said afterwards that the company was supporting and working with all stakeholders to overcome the shortages, and that it had taken “unprecedented actions to address this challenge.”

TSMC has pledged to spend $100 billion over the next three years to expand chip capacity.

 

  • Reuters with additional editing by Sean O’Meara

 

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Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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