TAIPEI (TVBS News) — Intensifying American technology regulations are creating substantial obstacles for China's ambitious semiconductor aspirations, according to leading Taiwanese industry experts. During the 38th MIC FORUM Spring conference held Wednesday (May 7), Peng Mao-jung (彭茂榮), a prominent industry consultant and director at the Market Intelligence & Consulting Institute (MIC, 資策會產業情報研究所), a Taiwanese government-backed technology research organization, delivered a comprehensive analysis of how Washington's expanding restrictions are effectively stalling Beijing's progress in developing high-end chip products and mastering advanced manufacturing processes.
The semiconductor expert traced the escalating technology containment strategy to 2022, when the United States began systematically implementing increasingly stringent export controls designed to restrict China's access to cutting-edge semiconductor chips and manufacturing equipment — technologies considered vital for both economic innovation and military advantage. According to Peng, Washington's strategic objective is twofold: to significantly delay China's technological advancement timeline while simultaneously strengthening America's position in the global technology leadership race. Nevertheless, Peng predicted that despite these formidable barriers, Chinese semiconductor companies would pursue alternative development pathways, concentrating their resources on mature manufacturing processes, specialized chip technologies, and heterogeneous integration techniques.
The technology confrontation has already produced measurable shifts in global semiconductor market dynamics, Peng observed, with Chinese companies experiencing noticeable market share erosion while American semiconductor firms have expanded their global footprint. He drew particular attention to China's persistent semiconductor vulnerability, citing the country's meager 20% self-sufficiency rate in chip production. This fundamental weakness necessitates continued heavy reliance on foreign semiconductor imports, creating substantial business opportunities for non-Chinese suppliers despite Beijing's massive investments in domestic chip manufacturing capacity over the past decade.
Expanding on these industry transformations, Chris Hung (洪春暉), who serves as both senior industry consultant and director-general at the Market Intelligence & Consulting Institute, highlighted how escalating tariff barriers between major economies have significantly increased operational costs throughout the semiconductor supply chain. These financial pressures are compelling multinational chip companies to actively pursue alternative manufacturing locations outside China. Hung noted that governments across multiple continents have launched aggressive incentive programs designed to attract semiconductor investments to their territories, fundamentally reshaping the industry's traditional geographic distribution and strategic planning considerations.
The potential return of Trump-era trade policies could precipitate even more dramatic industry realignment, according to Li Chien-hsun (李建勳), an industry consultant and deputy director at the Market Intelligence & Consulting Institute. Li suggested that a second Trump administration might trigger an accelerated migration of manufacturing capacity away from mainland China, particularly for products destined for American consumers. While immediate supply chain adjustments would likely focus on production relocation, Li emphasized that longer-term industry strategies would ultimately be shaped by the specific nature and scope of any new American tariff regimes targeting semiconductor components and finished electronic products containing chips. ★