IC industry driving possible China takeover of Taiwan

October 18, 2021 // By Peter Clarke
IC industry driving possible China takeover of Taiwan
Market analysis firm IC Insights argues that the intensifying trade conflict between the US and China is accelerating China's plans for reunification with Taiwan.

The People's Republic of China has always considered Taiwan to be a renegade state that it would have the right to occupy at a time of its own choosing. But a series of steps taken by Presidents Trump and Biden have brought pressure to bear on China, including an effective embargo on advanced technology supplies to communications giant Huawei and to China's leading chip foundry SMIC.

In the absence of the ability to develop its own leading-edge chipmaking capability China is increasingly looking across the Taiwan Strait for an answer, according to IC Insights.

Taiwan holds the largest share of any country of global chip manufacturing capacity – at about 21 percent. Taiwan and China together hold about 37 percent of global capacity And Taiwan holds about 63 percent of global sub-10nm production capacity.

Monthly installed IC manufacturing capacity for each minimum geometry technology category by region as of December 2020. Source: IC Insights.

China already manufactures about one-third of the world's electronic equipment but relies on imported ICs. In the IC sector it has a major trade deficit that it wishes to reduce and reunification of with Taiwan provides an immediate solution.

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