China's dominance in the technology world is increasing day by day. The technology fight between the United States and China is intense. Meanwhile, the country is also influencing the Taiwan technology market. China's chips have begun to be seen in the China's chip market in Taiwan's old technology.
Taiwan's Powerchip Technology signed a deal with a chip making factory in the country in the country to get the opportunity to enter China's potential technology market. However, that initiative has increased the competition rather than their success. After 5 years, the Chinese factory Nexchip has now become one of the major rivals of Powerchip in the China China market.
Due to the localization policy of Beijing, Powerchip has to leave their profitable business in China. And Nexchip exploits that opportunity and is occupying the chip market.
Nexchip has invested more than $ 1 billion in the 'mature node' chip industry, which is made of Nexchip 20 nanometer technology or higher. As a result, the factory of Taiwan has to move out of the market, or is going to advanced and specialized technology.
In addition to Nexchip, Chinese chip factories like Hua Hong and SMIC are challenging the dominance of Taiwan's Powerchip, UMC and Vanguard International in the chip market used for cars and display panels. They are occupying the market by increasing production capacity and reducing the price.
The UMC says they are facing a lot of competition due to the expansion of global production, and they are taking strategies to survive in the market by making advanced technology chips with Intel.
According to US TradeFource data, China's part of the worldwide technology chip production in 2021 was 5 percent and Taiwan was 5 percent. It is predicted that China's shares will be higher than Taiwan by 2021.
According to the consulting firm SEMI, China is from the Fabrication Plant of the 5 new semiconductor chips that started production from 2021 to 2021.
Taiwan's chip industry officials say that in the face of these challenges, local chip makers need to concentrate on advanced technology.
Powerchip Chairman Frank Huang said, “Old technology factories must change; Otherwise, the strategy of reducing the price of the Chinese company will put us more in danger. '
Huang also said, “We will no longer be able to do business of the chips that will be used in China … we must come out, otherwise it is impossible to survive.”
After the US sanctions were interrupted by high -quality technology chips, Chinese companies are emphasizing the production of old technology chips.
The US administration's anti -Chinese policies can bring some relief to Taiwan. Taiwan can be positive for US efforts to limit China's chip industry growth and the deterioration of other countries with Beijing. The US administration's anti-Chinese policy is forcing the chip supply chain to divide the 'China-Farah-Chayana' and 'non-chayna' network.
“Some customers directly informed us that they do not want to make a chip in China; They don't want 'med in china' chips. ”
Huang, chairman of Powerchip, said they had already received some orders that used to go to China before. “We hope this trend will increase in the future,” he said.
However, Taiwan's chip designers and manufacturers say that even if the more specialized technology is leaning, China will have to speed up to survive.
