Taiwan Semiconductor Urges Government To Boost Domestic Chip Gear, Material Making Position

Taiwan Semiconductor Manufacturing Company Ltd TSM Chair Mark Liu called on the island to produce more equipment essential to advanced chipmaking.

Taiwan could tap the opportunities arising from the U.S. tech embargo on China, he told a conference organized by the Taiwan Semiconductor Industry Association on Thursday, Bloomberg reports.

Liu added that the Taiwanese chip industry urged the government to offer more tax incentives for foreign equipment makers to set up local shops.

Also Read: US Chips Act Mandates Contenders To Share Excess Profits With Country, Refrain From Buybacks And China

Governments from Japan to the U.S. have tapped TSMC to boost domestic production of cutting-edge technology. Now, Taiwan itself needs to secure its supply chain, Liu said in his capacity as Chair of the association, a post he's ceding to another TSMC executive.

Liu said Taiwan must invest more in basic science and cutting-edge research to maintain competitiveness. It should build domestic capabilities for critical upstream technologies to produce the equipment and materials required to stay ahead in the chip race.

However, Taiwan's move could weigh on the leading U.S. suppliers of chipmaking gear Applied Materials, Inc AMAT, KLA Corp KLAC, and Lam Research Corp LRCX.

Earlier in March, TSMC's retired founder Morris Chang flagged higher costs and reduction in the omnipresence of vital chips associated with U.S. technology sanctions on China.

Price Action: TSM shares traded higher by 0.50% at $93.23 on the last check Thursday.