In the global semiconductor industry landscape, US trade policy is triggering a series of chain reactions. The US decision to raise import tariffs on mainland China semiconductor products not only affects trade relations between the two countries but also has a significant impact on the global supply chain. According to industry insiders in Taiwan, Taiwanese foundries have begun receiving orders for Power Management Integrated Circuits (PMICs) transferred from mainland chip manufacturers, making Taiwanese foundries beneficiaries.
Impact of US Tariff Policy
The increase in US import tariffs on mainland China semiconductor products directly increases the cost of Chinese semiconductor products entering the US market. This policy change forces buyers to seek alternative suppliers to avoid additional costs. According to comments from Hua Fu Electronics, semiconductor tariffs will increase from 25% to 50% by 2025. Such tariff increases add pressure to the price-sensitive semiconductor market.
Opportunities for Taiwanese Foundries
Taiwan, as a crucial base for global semiconductor foundries, possesses mature technology and capacity advantages. Against the backdrop of escalating US-China trade tensions, Taiwanese foundries have become a natural alternative. Taiwanese semiconductor companies like Taiwan Semiconductor Manufacturing Company (TSMC) hold leading positions in the global semiconductor foundry market, offering high-quality products and services.
Image: US tariffs on mainland China semiconductor products, customer orders transferred, benefiting Taiwanese foundries
Challenges and Responses for Mainland Chinese Foundries
Despite facing challenges from US tariff policies, mainland Chinese foundries are actively adjusting and responding. According to a report by JPMorgan Chase, the utilization rate of mainland Chinese foundries has gradually recovered after a period of adjustment. This indicates that the mainland Chinese market is also actively adapting to the new trade environment and maintaining competitiveness through internal adjustments.
However, reports from the foundry industry indicate that despite signs of market recovery, customer tape-out strategies remain conservative. Foundries have to further reduce prices to maintain capacity utilization and prevent order loss. This suggests that market uncertainties still exist, and foundries need to adopt more flexible and innovative strategies to cope.
Conclusion and Outlook
The US decision to increase tariffs on mainland China semiconductor products undoubtedly exacerbates tensions in the global semiconductor supply chain. Taiwanese foundries have become beneficiaries of order transfers, but this change also brings new challenges and opportunities. For Taiwanese foundries, this is an opportunity to expand market share and consolidate their position in the global semiconductor industry. At the same time, it requires Taiwanese foundries to make more efforts in increasing capacity, technological innovation, and customer service.
For mainland Chinese semiconductor manufacturers, this may prompt them to accelerate technological innovation, enhance product competitiveness, and explore new markets and customers. In the long run, this may drive the independent development and diversified layout of China's semiconductor industry. The global semiconductor industry is at a critical turning point, and all parties need to closely monitor market dynamics, adjust strategies flexibly, and invest in technological innovation and cooperation to respond to the constantly changing global market environment.
