The Biden administration is reportedly ramping up scrutiny of China's mature process chips during its transition period, potentially paving the way for tighter regulatory measures. Market analysts suggest the US could impose sweeping bans on electronic products utilizing chips made in China, intensifying geopolitical tensions in the tech sector.
Proactive moves by industry players signal readiness for such measures. Two leading American PC brands announced plans over the past year to phase out China-designed and manufactured chips entirely, while other firms are actively recalibrating supply chains to ensure compliance for products entering the US.
IC design firms are adapting strategies to meet shifting customer demands. In response to geopolitical tensions, many are diversifying production and adjusting shipping policies. Notably, Chinese clients are increasingly requiring imported chips to be fabricated domestically, reflecting a pivot in supply chain dynamics. For now, this trend is largely driven by major consumer electronics manufacturers, with smaller players yet to follow suit.
Despite concerns raised by US and European commentators about China's growing mature process capacity, industry experts argue its impact remains limited. Demand continues to hinge on the technological strengths of IC design firms rather than the production scale of Chinese foundries. Observers note that China's expanded capacity mainly serves domestic needs, with limited global impact due to the technological edge held by US and Taiwanese firms.
Should the US tighten restrictions, some IC companies see opportunities to outpace Chinese competitors reliant on aggressive pricing strategies, potentially boosting market space for Taiwanese firms. Conversely, China is likely to double down on reducing its reliance on US technology, accelerating domestic innovation.
Taiwanese IC design firms, positioned as third-party entities, are leveraging diversified production strategies to sustain shipments globally. However, the broader market outlook remains cautious. Analysts predict that any new policies will amplify existing decoupling trends, with the US and Chinese markets bearing the brunt of disruption.
European and non-aligned semiconductor firms, including Taiwanese peers, could capitalize on this fragmentation. Their ability to flexibly adjust production locations positions them to navigate geopolitical pressures, with Taiwanese companies particularly well-prepared for supply chain diversification.
