The chip race between China, the US, and Taiwan has intensified in recent years, and following President-elect Donald Trump’s recent victory, expectations are rising that the US could secure a dominant position in the chip market.
Recent reports indicate that Taiwan Semiconductor Manufacturing Company (TSMC) allegedly discovered one of its chips in a Huawei AI product, further escalating tensions as Huawei is on the US restricted list. In response, the US Department of Commerce instructed TSMC to halt shipments of advanced technology chips to China on Saturday.
TSMC announced it would stop selling 7-nanometer or smaller chips to Chinese chip design firms starting Monday, according to a report by the Chinese outlet Ijiwei. Meanwhile, the South China Morning Post (SCMP) noted that Huawei has stated it is not producing chips via TSMC following these restrictions.
Taiwan is projected to lead global chip production, holding a 68% market share in 2023, based on data from Visual Capitalist. However, this share is expected to decline to 60% by 2027 due to US efforts to bolster domestic chip manufacturing. The US is anticipated to make significant progress, with production forecasted to rise from 12% to 17% by 2027, driven by the CHIPS and Science Act of 2022 and Trump’s potential measures to increase domestic chip output.
Taiwan’s key clients include major US tech companies such as Nvidia and Apple. South Korea holds a 12% share in global chip manufacturing, while China accounts for 8%.
