China Displeased with TSMC's Suspension of Semiconductor Exports to Russia

Taiwan Semiconductor Exports Reach $20 Million... Impact Not Significant
Taiwan Opposition Criticizes US-Targeted Show Policies

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Taiwan authorities have banned semiconductor exports to Russia in connection with the invasion of Ukraine, Chinese state-run Global Times reported on the 1st. However, it evaluated Taiwan authorities' swift action unfavorably, noting that Taiwan's semiconductor exports to Russia are not significant in scale.

[Image source=Reuters Yonhap News]

Global Times, citing Taiwan's Central News Agency, reported that Taiwan's ruling Democratic Progressive Party (DPP) authorities immediately applied the U.S. sanctions after the U.S. imposed export bans on advanced products to Russia.

Accordingly, the world's largest semiconductor foundry company, TSMC, has stopped exports to Russia, Global Times reported.

TSMC stated in a press release, "We will do our best to comply with the newly announced export control regulations," adding, "(We) will no longer produce Elbrus semiconductors designed in Russia." Elbrus is known to be applied in some computers used by the Russian military and security authorities.

Taiwan's Ministry of Economic Affairs said, "Since February 27, strict inspections have been conducted on products exported to Russia, and we will closely cooperate with Taiwanese semiconductor companies going forward," Global Times reported.

Global Times analyzed that Taiwan's ban on semiconductor exports to Russia would not have a significant impact. Last year, the semiconductor trade volume between Taiwan and Russia was only 20 million USD (24.1 billion KRW). Of Taiwan's total exports to Russia last year amounting to 1.32 billion USD, electronic components accounted for 30 million USD, of which 20 million USD were semiconductors. On the other hand, Taiwan imported a total of 4.99 billion USD worth of metals, ores, energy, and other products from Russia, it added.

Regarding the DPP's swift export ban to Russia, Li Guimin, a legislator from Taiwan's Kuomintang, said, "Semiconductors are a core industry of Taiwan, and some of the rare minerals necessary for semiconductor production come from Russia and Ukraine," adding, "Taiwan's resources are limited, so major resources are imported from overseas, and I wonder if preparations have been made for this," questioning the DPP.

Huang Kuibo, a professor at Taiwan National Chengchi University, sarcastically said, "The DPP authorities' swift action is to gain favor with the United States."

Zhao Lin, a member of the International Affairs Committee of Taiwan People's Party, criticized, "This is a measure to show off to the United States, and such actions are nothing more than Taiwan's self-promotion."