Taiwan's IC Semiconductor Exports Up 18.4%... "Irreplaceable Semiconductor Leader"

TSMC Surpasses Samsung Again in Q4 Following Q3

[Asia Economy Reporter Kwon Haeyoung] Taiwan's IC semiconductor exports increased by 18.4% last year. Amid the US-China supply chain competition, Taiwan, a semiconductor powerhouse, has further solidified its position as an industry leader, Bloomberg reported on the 15th (local time).

According to Taiwan's Ministry of Finance, exports of IC semiconductors used in electronic products, computers, and smartphones increased by 18.4% compared to the previous year. This marks the seventh consecutive year of growth since 2016 and the third consecutive year of double-digit growth.

Son Beomgi, an economist at Barclays, a British investment bank (IB), said, "Taiwan is irreplaceable in the semiconductor industry in the short term," adding, "Although the US and other countries are trying to expand semiconductor production, it will not immediately affect Taiwan's importance."

Since the COVID-19 pandemic, amid supply chain instability, semiconductors?known as the "rice of industry"?have emerged as a national security threat, increasing Taiwan's standing in the global market. Even when global trade contracted due to decreased worldwide demand, semiconductor sales drove Taiwan's exports. This is thanks to TSMC, which produces more than half of the world's semiconductors. TSMC surpassed Samsung Electronics in the third quarter of last year to become the world's number one semiconductor company by revenue and maintained the top position in the fourth quarter as well. Although the memory market was sluggish last year, the foundry sector was relatively less affected.

Governments around the world are also courting TSMC. In June last year, TSMC broke ground on an advanced semiconductor factory in Phoenix, Arizona, USA. Following the establishment of a semiconductor factory in Kumamoto, Japan, TSMC is also preparing a second factory within Japan.

Economist Son said, "The medium- to short-term outlook is more volatile," adding, "Not only COVID-19 but also the US-China trade dispute reveals the vulnerabilities of the supply chain."