China's growing production capacity in the semiconductor sector, particularly regarding chips manufactured with mature production processes, is generating apprehension in Taiwan.

Concerns for the technology supply chain

The Taiwanese government has been urged to initiate thorough audits of the production activities of local companies operating in China. The goal is to assess the extent of Chinese investments, the potential risks to the Taiwanese technology supply chain, and the implications for national security.

General Context

China is investing heavily in the semiconductor sector to reduce its dependence on foreign technologies and become a global leader in chip manufacturing. This effort includes developing production capacity for chips with less advanced processes, but still essential for numerous industrial sectors. Chinese competition in this segment could have a significant impact on Taiwanese companies that currently dominate the market.