Lai urges semiconductor supply chain unity in face of China's dumping

Taipei, May 23 (CNA) President Lai Ching-te (賴清德) on Friday called for unity and cooperation in the global semiconductor supply chain to take on dumping by Chinese suppliers.

Addressing a semiconductor forum organized by the government-sponsored Industrial Technology Research Institute (ITRI), Lai said the semiconductor sector may stress innovation but it still faces problems caused by unfairly low pricing by Chinese suppliers of mature processes.

The Chinese government, Lai said, has used subsidies among other measures to allow their suppliers specializing in mature technologies to dump their products in the global market, just as their steel, aluminum, solar panel, and display screen suppliers have done.

The global semiconductor industry is now faced with a similar headache and if it fails to take any action, the situation will deteriorate, Lai argued.

"Countries should unite and cooperate as partners in the global semiconductor supply chain to ease the impact resulting from dumping from China," Lai said. "Otherwise, innovation cannot continue and industrial development will be affected."

Lai said Taiwan ranks No. 1 in the global pure play foundry sector, accounting for 90 percent of total advanced chip sales.

It also ranks first in the IC packaging and testing services business and third in the IC design business, but despite these strengths the country is still part of the global supply chain, the president said.

Lai said other countries contribute to the global semiconductor industry in their own ways, such as the United States, which is good at semiconductor materials, equipment and technology development, meaning that Taiwan cannot be the only driver of the sector's growth.

"So, cooperation in the global supply chain is very important to push for prosperity for the next generation," Lai said. "Taiwan has the responsibility of acting as a focal point in technology development in the current artificial intelligence era."

In Taiwan, Lai said, the government will work with the industrial sector to write policies to improve legal mechanisms and provide financial assistance and tax incentives to help the industry grow.

Echoing Lai, Stephen Su (蘇孟宗), senior vice president of ITRI, said the global semiconductor sector needs a larger talent pool so Taiwan should cooperate with its partners to cultivate next-generation talent for future development.

Su said Taiwan should also work with its partners to build a diversify semiconductor supply chain by creating forward-looking technologies and setting industrial standards.

Also at the forum, Kazuyuki Katayama, Japan's representative to Taiwan, said cooperation among Japan, Taiwan, the United States and Europe should prevent interruptions in semiconductor supplies, which will in turn guarantee economic security in the world.

Meanwhile, AIT Deputy Director Jeremy Cornforth said the U.S. has valued its partnership with Taiwan, and he hoped the two sides will take advantage of technology developments to build a resilient supply chain.

Cornforth said he also hoped to reinforce the U.S.-Taiwan partnership, which will allow Washington to maintain its competitive edge in semiconductor and AI development.