Month: March 2021

U.S. President Joe Biden’s order to secure semiconductor supply chains for high-tech hardware production offers a commercial boost to Taiwan, one of the world’s biggest providers of chips, and gives Taipei new weight in any free-trade talks, analysts say.Biden signed an executive order Feb. 24 for the United States to start overcoming a chip shortage that has hobbled the manufacturing of vehicles, consumer electronics and medical supplies. It will trigger a review process leading to policy recommendations on how to bolster supply chains.Taiwan comes into play as the home of Taiwan Semiconductor Manufacturing Co., which spins out more chips than any other contract manufacturer in the world and has some of the most advanced production processes. Those advances generate semiconductors that run on relatively little power without sacrificing the speed of a device.Remote study and telework, two trends that exploded during the 2020 coronavirus outbreak, raised demand last year for chips that run notebook PCs, among other types of consumer hardware. World demand for chips should increase from $450 billion last year to about $600 billion in 2024, market research firm Gartner says.“This is good, and I think at this moment Taiwan finally can offer something concretely and to help the United States somehow, some way,” said Liu Yih-jiun, public affairs professor at Fo Guang University in Taiwan.Taiwan has tried off and on since 1994 to arrange a trade deal with the United States, which is its second-biggest trading partner after China. U.S.-Taiwan trade totaled $90.9 billion in 2020. Americans buy chips, computers and machinery, among other Taiwanese goods, resulting in a $29.3 billion trade surplus for the Asian manufacturing center last year.Starting in January, Taiwan began allowing shipments of American pork from pigs raised on the feed additive ractopamine, and U.S. officials lauded that step as progress in trade relations.The Biden administration has asked Taiwanese officials about pushing their chipmakers to step up semiconductor production amid a shortage of chips for automotive use, Bloomberg reported last month.American demand for semiconductors will help raise Taiwan’s position when negotiators meet again for trade talks, said John Brebeck, senior adviser at the Quantum International Corp. investment consultancy in Taipei.“Because of the [Sino-U.S.] trade war, and because of semiconductors, and because Taiwan did so well on COVID, and it’s a democracy they want to support, I think it moves forward,” Brebeck said.Trade talks will take place “in a much more balanced way” due to Taiwan’s weight in global semiconductors, Liu said.Trade deal or not, Taiwan’s chipmakers will get a surge in business because of the shortage, though they may struggle to prioritize customers, Brady Wang, an analyst in Taipei with the market intelligence firm Counterpoint Research, said.“There’s actually no risk to the companies, but you can say there’s the issue of how much they can spread out production and who they’re going to sacrifice,” Wang said.Taiwan Semiconductor Manufacturing Co. broke ground in 2018 on a $15 billion factory complex in Taiwan with volume production expected to reach full capacity this year. The complex will produce more than 1 million wafers per year and employ about 4,000 people. In December last year the 34-year-old firm got Taiwan government clearance to build a $12 billion factory in the U.S. state of Arizona. That plant will make up to 20,000 wafers per month.The project in Arizona and the new one in Taiwan are “well on track,” a spokesperson from the company’s headquarters said.Powerchip Semiconductor Manufacturing Corp. and United Microelectronics Corp. also make chips in Taiwan. A spokesperson for United Microelectronics said last month his company was doing all it can to meet demand for automotive chips.
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This week a U.S.-government backed commission of technology experts completed a three-year review of the country’s artificial intelligence capabilities, urging the development of a new national technology strategy to stay competitive with China.The National Security Commission on Artificial Intelligence (NSCAI) has been studying how artificial intelligence and machine learning can address U.S. national security and defense needs. It recommended spending billions of dollars more on research, diversifying the American industrial supply chain for microchips and other high-tech products, and reforming immigration policies to attract talented researchers and workers.Some of those steps are under way. Republican and Democratic lawmakers are now focusing more on ways to address technological competition with China, following years in which officials say China carried out corporate espionage and forced technology transfers to rapidly advance its technological capabilities.Sen. Mark Warner, D-Va., talks to reporters on Jan. 28, 2020 on Capitol Hill in Washington.On Thursday, a bipartisan group of senators introduced legislation aiming to help the U.S. government develop more technology partnerships with allies to counter China’s rise in artificial intelligence, 5G, quantum computing and other areas.The bill, led by Virginia Democratic Senator Mark Warner, a former technology entrepreneur, would create a new interagency office within the State Department focusing on coordinating tech strategies with other democratic nations. It would also create a $5 billion fund supporting research projects between government and private companies.In this image from video, Senate Minority Leader Chuck Schumer of N.Y., speaks in the U.S. Capitol on Jan. 6, 2021.Last week, Senate Majority Leader Chuck Schumer urged a bipartisan effort to draft a bill investing in disruptive new technologies to challenge China.Also last week, President Joe Sen. Bob Menendez, D-N.J., talks to reporters on Capitol Hill in Washington on June 12, 2018.Democratic Senator Bob Menendez of New Jersey, chairman of Senate Foreign Relations Committee, told VOA Mandarin he believes the bill will receive broad bipartisan support.“On the broad issue of China, supply chain is one element of it. But we are working on the broader issue of how do we both compete with China and how do we confront China,” Menendez said, “I think there’s plenty of room where there should be a common ground that we can come together.”He added that he has been discussing America’s China policy with Secretary of State Tony Blinken, and the State Department is conducting its own comprehensive evaluation on current China policies.“There’s a whole of government review vis-a-vis China, which I applaud,” Menendez told VOA.Similar efforts are ongoing in the U.S. Congress, where several Republican legislators are pushing the White House to maintain former President Donald Trump’s hardline posture on China.Rep. Greg Steube, R-Fla, speaks during a House Judiciary subcommittee hearing on Capitol Hill on July 29, 2020 in Washington.Representative Greg Steube, a Florida Republican, introduced the Keep Huawei on the Entity List Act on Wednesday, which would continue export controls and keep China’s telecommunication firm Huawei on the U.S. Department of Commerce’s entity list.“Huawei is one of the most powerful tools that the Chinese Communist Party can use for espionage and potential destruction against the United States,” Steube said in a statement.James Lankford, a Republican senator from Oklahoma, said that he and his colleagues have been talking with the White House about keeping some of the Trump-era policies on China.“We want to make it very clear. And that policy shouldn’t be thrown aside just because they have the name Trump in front of them,” he told VOA. “If there were good policies, and they were good policies, and they should remain.”Artificial intelligence for the futureThe artificial intelligence report recommends that the Department of Defense must have the foundations in place by 2025 for widespread adoption of artificial intelligence systems.The commission also addressed the ethics of using AI-enabled and autonomous weapons. For now, it said the Defense Department has adequate protections in place so that such weapons do not require a global ban and can continue to be used in accordance with international humanitarian law. It recommended establishing systems to build confidence in AI technology and keeping humans in the decision chain for deploying nuclear weapons.Lin Yang contributed to this report.
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