The 'Chip 4' meeting led by the U.S., South Korea, and Japan has kept out Taiwan so far, Reuters reports. However, Taiwan also assured close cooperation with the U.S. on supply chains.
Recently, the U.S. approved the CHIPS Act involving $52 billion in subsidies for companies that make chips or conduct chip research in the U.S., aiming to reduce its dependence on Asian nations, including China. China voiced its displeasure over the restrictions proposed by the Act on its access to technology.
The U.S. also sought deeper cooperation with Japan and South Korea to compete more with China's science and technology efforts.
Taiwan's economy ministry said they were not made aware of any relevant information. "In past exchanges and dialogue between Taiwan and the United States, the United States did propose similar ideas, but there was no specific content at the time," it added.
Key Apple Inc AAPL supplier Taiwan Semiconductor Manufacturing Company Ltd TSM controls about 54% of the global market for contractually produced chips.
South Korea is home to Samsung Electronics Co, Ltd SSNLF and SK Hynix Inc, supplying over half of the global memory chip market.
Recently U.S. diplomat Nancy Pelosi visited Taiwan, rubbing China the wrong way. China considered Taiwan a part of its territory, and Pelosi is a longtime critic of China and has been a forthright human rights advocate.
China conducted military drills around the Taiwan Strait soon after Pelosi's visit, reportedly warning the U.S.
Price Action: TSM shares traded lower by 1.90% at $87.47 on the last check Friday.
Photo via Wikimedia Commons
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.