Semiconductor issue | India in talks with Taiwan to bring chip manufacturing in South Asia
Almost all of the world’s semiconductors – the foundation of every-day electronics – are made by one company, Taiwan Semiconductor Manufacturing Co. (TSMC). But as demand for chips increases exponentially with the relentless march of technology, the company’s dominance puts the world in a vulnerable position as Taiwan remains the focal point of tensions between the US and China, which claims Taiwan as its own territory.
Almost all of the world’s semiconductors – the foundation of every-day electronics – are made by one company, Taiwan Semiconductor Manufacturing Co. (TSMC). But as demand for chips increases exponentially with the relentless march of technology, the company’s dominance puts the world in a vulnerable position as Taiwan remains the focal point of tensions between the US and China, which claims Taiwan as its own territory. In recent weeks, India and Taiwan have been working on a deal to bring chip manufacturing to South Asia. (Image: News18 Creative)
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The trade talks between India and Taiwan come at a time when democracies across the world are boosting economic and military links to stand up against an increasingly assertive China. (Image: News18 Creative)
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Taiwan’s world domination. (Image: News18 Creative)
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TSMC has become indispensable to both US and China. (Image: News18 Creative)
TSMC invests heavily in cutting-edge chip factories (known as fabs). It has also stopped cutting prices. TSMC can charge between twice and three times as much per silicon wafer made using its most advanced processes, compared with what the next-most-advanced technology will fetch. (Image: News18 Creative)
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Over the past few years, TSMC has increased its R&D spending. (Image: News18 Creative)
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Current shortages of processors primarily reflect the strength of demand, but the concentration of their production in Taiwan heightens the threat of a shock to supply. (Image: News18 Creative)
