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Taiwan seeks alternate sites for semiconductor manufacturing amid China tensions

Taiwan seeks alternate sites for semiconductor manufacturing amid China tensions

Taiwan makes some of the world's smallest and most advanced computer chips -- a commodity that is vital for electronics but in short supply worldwide.

Taiwan's semiconductors are used in electronics across the globe. Taiwan's semiconductors are used in electronics across the globe.

Taiwan is seeking a resilient global supply chain and alternate sites for manufacturing semiconductors amid the ongoing tensions with China. The island is also in talks with India for shifting semiconductor manufacturing to break China's stranglehold around it.

India Today spoke to Gabriel Chou, deputy project director, Macronix international, one of the largest semiconductor manufacturers in Taiwan, on how the firm aims to maintain a resilient supply chain.

"We work with our customers. We prepare raw materials early to ensure smooth production. A major proportion of our raw materials come from Japan. But, semi-conductors need a global supply chain for raw materials. To ensure resilient supply, we prepare in advance. From raw material to finished product, there are thousands of manufacturing steps and if one step goes wrong the production has to be stopped," Gabriel Chou told India Today.

More than 1.5 lakh people are engaged in integrated circuit manufacturing in Hsinchu Science Park, located 80 kms from Taipei.

Taiwan's semiconductors are used in electronics across the globe from mobiles to missiles; TV to play stations; and automobiles to aircraft.

Meanwhile, US-China tensions have risen since Beijing staged huge military drills in retaliation for US House Speaker Nancy Pelosi's visit to Taiwan earlier this month.

Alongside South Korea, Taiwan makes some of the world's smallest and most advanced computer chips -- a commodity that is vital for electronics but in short supply worldwide.

Taiwan lives under constant threat of an invasion by China, which claims the island as part of its territory to be seized one day -- by force if necessary.

(Inputs from Gaurav C Sawant)