Tensions between China and the USA continue at full speed. This situation negatively affects the diplomatic relations between the two countries and the commercial relations in the region. According to the statements of MediaTek CEO Rick Tsai, political tensions are pushing some manufacturing companies to talk about expanding some of their supply chains beyond Taiwan.
Rick Tsai: Supply chain are gradually leaving Taiwan
Taiwan is one of the leading technology centers in the world. The headquarters of many important companies, such as Asus, MediaTek and TSMC, are located here. In addition, supply manufacturers, which are very important for technology companies, are also located here. This situation contributes to the development of commercial relations in the region and the development of technology in Asian countries.
However, according to MediaTek CEO Rick Tsai, some of the “very large (equipment manufacturers) will require their chip suppliers to have multiple sources, like from Taiwan and from the U.S., or from Germany or from Europe.” Tsai said that if it continues like this, they need to find different sources for the same chip in the future and underlined that the change is not large-scale.
Will MediaTek shift production out of Taiwan?
While MediaTek’s most advanced smartphone chips are manufactured in Taiwan, the company also has overseas plans. Tsai said some of the older chip models were manufactured by GlobalFoundries Inc, which has factories in places like the US and Singapore. The company is pushing to expand its business in the US and wants to increase sales several fold.
MediaTek will also manufacture at Intel’s Ireland and TSMC‘s Arizona facilities. However, these preparations seem more like being ready for the worst than shifting production. Tsai also said it was unrealistic to move away from Taiwan completely, the world’s most important region for advanced chip manufacturing.
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(Source)
