Chu-Hsien Hsu’s Post

Taiwan must enhance collaboration with trusted global partners to sustain its leadership in advanced semiconductor manufacturing amid China's increasing influence in legacy chip production. Experts at a forum in Taipei stressed that while Taiwan has a robust semiconductor ecosystem, it needs to forge alliances with other nations. Joe Wang, a former U.S. security official, warned that legacy chipmaking is heavily leaning towards China, driven by government subsidies aimed at boosting political power instead of business growth. Currently, China produces about 60% of the world's legacy chips, a situation worsened by U.S. export restrictions on advanced chip technologies. Kazuto Suzuki from the Institute of Geoeconomics emphasized the necessity for Taiwan and Japan to work together in semiconductor research and development, advocating for the sharing of ideas, technologies, and intellectual property to maintain technological superiority. Economist Yeon Won-ho from South Korea recommended collaborative efforts between Taiwan and South Korea, seeing them as complementary partners. He pointed to opportunities in information and communication technology (ICT) services and devices, particularly as the U.S. moves to limit Chinese technology imports for data privacy reasons. The forum was co-organized by Taiwan's National Science and Technology Council's Research Institute for Democracy, Society and Emerging Technology. #Semiconductors #Taiwan https://lnkd.in/g8TznyqF

The ECCT's Technology committee recently hosted a lunch event focused on the topic of "Semiconductor diplomacy," highlighting the challenges and opportunities related to TSMC's investments in the United States, Japan, and Germany. Guest speaker Dr. Lee Chun-Yi, an Associate Professor at the University of Nottingham and Director of the Taiwan Research Hub, provided insights into industry developments, particularly emphasizing the impact of geopolitics on the semiconductor sector's evolution and future. She emphasized that the intricate nature of the semiconductor supply chain makes it impossible for any single country to independently produce all required chips, and while it may be feasible to diversify supply chains to mitigate risks, complete decoupling from other countries remains unrealistic. Dr. Lee identified Taiwan's skilled workforce as a key element contributing to the nation’s successful semiconductor manufacturing. The demanding working conditions faced by semiconductor fabrication workers in Taiwan foster a culture where employees often prioritize their careers over work-life balance for the sake of higher earnings and bonuses. This phenomenon creates a cycle where those who endure the rigorous environment eventually ascend in their careers and perpetuate the same stringent expectations for newcomers. Compared to Taiwan, it is considerably harder to attract workers willing to make such personal sacrifices in the United States and Germany, while Japan has a somewhat similar culture of enduring tough conditions, though workers there typically demand higher salaries. Consequently, manufacturing costs overseas are anticipated to be significantly higher than in Taiwan due to these dynamics. During the Q&A session, Dr. Lee addressed the prospects of Europe in the semiconductor arena. She reiterated that a fully autonomous supply chain within a single country is not practical; thus, countries should leverage their unique strengths and specialize in sectors of the supply chain where they hold advantages. She posited that European countries have a notable opportunity in integrated circuit (IC) design, which hinges more on talent than capital investment and typically enjoys higher profit margins than manufacturing. Furthermore, she encouraged Europe to pursue increasing its market share against US technology firms, which currently dominate profits in the IC design sector. #Semiconductors #Taiwan https://lnkd.in/dUNF47sr

The Biden administration's new investment restrictions targeting Chinese tech sectors raise critical questions about the future of global tech collaboration. As of January 2, the U.S. aims to limit investments in AI, quantum computing, and semiconductors, all deemed vital to national security. Proponents argue it’s a necessary step to curtail China's military capabilities. However, there are significant concerns that this decoupling may stifle innovation and isolate U.S. tech companies from valuable international expertise and collaboration. Is it too late to hold back China's technological progress? With Chinese firms rapidly advancing and a brain drain continuing, these restrictions might inadvertently push China towards self-sufficiency. Instead of strict bans, could a more nuanced approach of selective partnerships be the key to fostering innovation while securing critical technologies? As we navigate this complex landscape, the challenge remains: balancing national security with the need for global collaboration.

#US-#China saga. US is a fickle friend, #Taiwan knows this from experience & is willing to express it😉 "Kwang-Leei Young, a former TSMC R&D director, told a forum hosted by DSET Research Institute for Democracy, Society and Emerging Technology in Taipei that the #semiconductor industry is facing risks from US-China trade tensions-driven 'geopolitics 2.0.' According to Young, 'geopolitics 2.0' is a contemporary version of what he called 'geopolitics 1.0,' which took place in the 80s when the US, feeling threatened by #Japan, sought to dismantle its dominance in the #semiconductorindustry. 'The #risk of #geopolitics 2.0 also comes from the US [amid its trade frictions with #China], in which there is concern that Taiwan might lose its competitive edge when [Taiwan's companies] are asked to set up factories there,' he said. 'Recently I've heard that the US government is also asking [#Taiwanese companies'] R&D to be moved to the US, which makes it more disconcerting.' However, Young pointed out that in the 80s tensions arose because Japan's products could replace what the US was producing, which meant there was little risk of D.C. harming itself when it battered Japan. 'What Taiwan is facing today is different. US companies, including the world's top #IC companies such as Qualcomm and NVIDIA, still need TSMC; they don't have many alternative options.' So the US government would not take actions that result in mutually assured destruction, Young said. 'It is now seeking relatively safe, alternative solutions, of which asking TSMC to manufacture in the US is one, but it won't stop there, as this is still not comfortable enough for the US,' he argued, adding that comfort would be assured when the US can manage risks, an apparent one of which would be a disconnected #supplychain caused by a possible #war in #Asia. The US would also try to support its own companies such as #Intel to go into #foundry business, Young noted. But the former TSMC R&D director believed the hurdle of replacing Taiwan in the foundry business would be huge for the US, 'much more difficult' than how it took on Japan in the 80s. Japan's products were, like the US, produced in the #IDM model, Young said. IDM model is one that a #semiconductor company designs, manufactures, and sells ICs all by itself. 'Japan's IDM model was cost-based so it was easy to be hurt by an exchange rate change,' he said, understandably referring to the 1985 Plaza Accord that triggered a large appreciation of the #Japanese #yen. 'Also daily life then was probably not affected by IC that much, which is different from today's world where a high percentage of our products require chips'. Young said Taiwan should convince the US that there can be a win-win solution with the two countries occupying different but complementary segments in the IC industry. 'The US is strong in advanced #research, for instance, and Taiwan can work with them on that, but mutually harmful approach should be avoided.'"

We are proud to release our 2nd Annual "US-China Decoupling & Economic Separation Index" that ranks and grades the private sector's corporate entanglements with China, coinciding with next week's inaugural "Economic Statecraft Summit" with Texas A&M University & Potomac Institute for Policy Studies. While the core is rankings, we want to highlight our expansive investigation into Intel Capital and Intel Corporation, a company that has received far less blowback compared to similar companies investing against the long-term interests of the U.S. and democracy (see: Qualcomm Ventures and Qualcomm, called out in the Select Committee on the Chinese Communist Party's investigation), but continues to support for startups, especially AI, in #China. As we detail in our report, the most recent investments by Intel Capital have occurred in the last 12 months. Like our inaugural report in 2023, the core is the rankings, yet we undertook this review based on the principle that it is fair to hold all companies to a common account and, when appropriate, shine the disinfecting sunlight of public transparency on the actors that may make the right publicity statements but continue to flaunt enrichment by the foes of democracy. We believe that even the companies that have been the preferred industry champion and remain critical to the future of the US semiconductor industry, such as Intel Corporation, should not be above public scrutiny, greater evidence will be revealed in other mainstream publications, an investigation initiated at the private prompting of our executive director Andrew King, to which contributed additional data and resources on their behalf. #chinabusiness #Decoupling #EconomicSeparation #IntelCapital #IntelCorporation

The geopolitical tech landscape shifts as China prioritizes semiconductor self-reliance. Qiming, the latest iteration of the Thousand Talents Program, aims to attract top tech talent. How can international collaboration thrive in the face of export controls? Let's discuss! https://bit.ly/3Sd9yI7 #FattyFish #TechCollaboration #GlobalInnovation

Politico [excerpt]: #Belgium-based Imec, a world-leading #research center in #microelectronics, has soured on #China. #Imec has "drastically reduced" its Chinese partnerships, the Flemish Economy Ministry, which oversees the #microchips research center, told POLITICO. The research center will continue to phase out ongoing obligations on more mature #technology. Imec's rollback is the latest example of how "China" has become a tainted word in the #chips industry. European governments are closely scrutinizing the contacts that their chip companies have with China — mostly pressured by the United States, which aims to cut off China's access to advanced chips. It's a watershed moment for the microchips industry, which supports everything from the #dataeconomy to #consumerelectronics. The chips #supplychain for decades was carved up into highly specialized companies spanning the globe. It depends on global #trade for its rapid innovations. Since its conception in 1984, Imec has carefully crafted the image of a neutral ground, where researchers, chip manufacturers and other companies from all over the world can jointly push for progress on the next generation of chips. In an interview last month, Imec CEO Luc Van den Hove touted Imec as "the Switzerland of #semiconductors," where all the key players in the industry can come together. In the past, this stance has led to some high-profile collaborations with Chinese semiconductor companies, such as #SMIC and #Huawei. Two Imec spin-offs were later even integrated into Huawei: one called M4S in 2011 and another called Caliopa in 2013. In 2015 the research centre teamed up in a joint venture with both SMIC and Huawei. Asked about its partnerships with Chinese companies, Imec said in a statement it has a "robust, voluntary policy with regard to collaborations with Chinese companies and #universities," based on U.S. export policies and the fact that Imec has a lot of partnerships in the U.S. "Our policy was further refined in reaction to the global geopolitical developments," it added. The region of #Flanders subsidizes Imec (for an amount of €134 million in 2022) and has a big say in Imec's marching order — also through representatives on the board of directors of Imec. Jo Brouns, economy minister for Belgium's northern region of Flanders, told POLITICO in November that Imec had to "focus mainly on the like-minded countries" when asked whether Imec should show any caution towards China. Some of the West's like-minded partners with a chips stronghold are the U.S., Japan, South Korea and Taiwan. "There is a certain shift that is in there that is being made," Brouns agreed. #news #business #geopolitics

President Xi Jinping addressed concerns and acknowledged the country’s innovation deficit at the national conference in China, last Tuesday. It´s hard to ignore China's progress as a global innovation powerhouse over the past few decades, from a manufacturing hub to cutting-edge tech advancements, top spenders on R&D and entrepreneurial dynamics. However, one of the strategic areas enhanced by President Xi is the need to strengthen the overall structure and processes related to technology and organizations. I witnessed big efforts were continuously placed to do so, however, innovative systematic processes are hard to implement some due to organizational challenges, blurry long-term vision, cultural views, hierarchical structures, and "fear" of accountability to risk-taking and experimentation, which are crucial for innovation. 👇 Now I see this issue is no longer the "elephant in the room", therefore be alert and seize the opportunity to improve local organizations' processes. #innovation #opportunity #organizationalChallenges #chinaInnovation #processImprovement #strategicVision

In a significant shift towards technological self-reliance, China has announced a decisive move to exclude Intel and AMD products from its government devices. 🚫🖥️ This strategic decision underscores the growing trend of digital sovereignty, as nations seek greater control over their technological infrastructures amidst global uncertainties. The most intriguing part of this development is China's commitment to fostering its domestic technology sector, reducing dependency on foreign tech giants. This initiative not only highlights the country's ambition to become a global tech leader but also poses questions about the future of international tech collaborations and market dynamics. For those who are keen to explore the implications of this policy change and its impact on the global tech landscape, click here to access the full analysis: https://lnkd.in/dCNaMPRD 📚 Reflecting on China’s move, it's evident that the path towards digital autonomy is becoming increasingly prevalent. This decision may well catalyze a series of changes in how countries approach technology procurement and development, emphasizing the importance of national security and economic independence in the digital age.  Will it spur innovation or lead to further tech fragmentation? Share your thoughts! #DigitalSovereignty #TechPolicy #GlobalTech #ChinaTech #DataNatives

https://lnkd.in/g6e2iAEv My article explores the possibility of cooperation between India and Taiwan in the field of science and technology