For Chip Supply Chain, US Selects Taiwan Not China – Free PDF Download



What has happened?

  • President Biden on Wednesday formally ordered a 100-day government review of potential vulnerabilities in S. supply chains for critical items, including computer chips, medical gear, electric-vehicle batteries and specialized minerals.
  • The directive comes as U.S. automakers are grappling with a severe shortage of semiconductors, essential ingredients in the high-tech entertainment and navigation systems that fill modern passenger vehicles.

What is a chipset?

  • A chipset acts like the motherboard’s communications center and traffic controller,
  • It ultimately determines what components are compatible with the motherboard—including the CPU, RAM, hard drives, and graphics cards.
  • It also dictates your future expansion options, and to what extent, if any, your system can be overclocked.

  • Biden’s executive order also is aimed at avoiding a repeat of the shortages of personal protective gear such as masks and gloves experienced last year during the early months of the coronavirus pandemic.
  • “The American people should never face shortages for the goods they rely on,” the president said at the White House before signing the measure.

What with Taiwan?

  • Washington has stepped up its efforts to win more collaboration and investment from Taiwan’s key chip and tech companies after
  • President Joe Biden signed an executive order to review critical U.S. supply chains.
  • William Brent Christianson, the director of American Institute in Taiwan — Washington’s de facto embassy to the island —
  • On Thursday met dozens of Taiwanese chip and supply chain executives to urge a closer partnership with the U.S.
  • He also set out U.S. aims to attract more Taiwanese investment into the U.S.
  • Representatives from the German Institute Taipei and the Japan-Taiwan Exchange Association, the de facto embassies of Japan and Germany in Taiwan, also joined the meeting.
  • Washington wants to bring critical parts of the chip supply chain onto its own soil.
  • The president has said supply chain vulnerability should not be used as “leverage” against the U.S.

Chipmakers in Taiwan

  • Chipmakers including United Microelectronics, Powerchip Semiconductor Manufacturing, Vanguard International Semiconductor, MediaTek, Nanya Technology, and many others Joined the closed-door discussion.
  • Some key material and equipment vendors including LCY Chemical — which has just signaled its intention to make its largest overseas investment in the U.S.
  • As well as TongTai Machine and Tool, Taiwan’s biggest machine tool builder, were also invited.
  • Many U.S. and European companies’ local executives also joined the talk, including Qualcomm, Micron, Texas Instruments, Synopsys, Arm, and STMicroelectronics.


  • Washington has been urging a reshaping of global supply chains amid the ongoing tech war with Beijing and the global coronavirus
  • Taiwan is playing an important role in supporting the U.S. campaign given the democratic-ruled island’s advanced tech supply chains.
  • China views Taiwan as a wayward province and does not rule out the option to take control of the island by force.
  • The AIT hosted its first public forum on supply chain restructuring in Taipei in September last year,
  • Together with EU, Canadian & Japanese counterparts, to publicly advocate decoupling from China.

Why chipsets are important?

  • Like a smartphone, a modern car also uses
  • In fact, a Deloitte analysis suggests that electronics make for 40% of a new car’s total cost.
  • Over the past few years, automakers have increasingly become dependent on semiconductors and electronic components.
  • More cars now have a power steering, tablet-like display, Wi-Fi connectivity and cellular connectivity.
  • That means to make a car you need semiconductors and without access to the chips, it is impossible to manufacture a vehicle.
  • A delay in getting the chips will halt production lines and automakers can’t keep up with a boom in demand.
  • That’s exactly what’s happening now.

Q) Identify this country?

  1. A chain of islands
  2. Became independent in 1965
  3. The lowest country on Earth
  4. Slowly disappearing as climate change raises water levels in the Indian Ocean
  1. The Comoros
  2. The Maldives
  3. The Solomon Islands
  4. The Mauritius




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