Haitao said that the global semiconductor industry is backed by various resources in Taiwan. The average daily water consumption of TSMC’s factories last year was as high as about 150,000 tons
With the onset of the COVID-19 pandemic, the US government has been banning trades and business deals with China, which has a deeper impact on the Chinese economy. Following the same trends, several countries are now planning to shift their manufacturing hubs out of China. In this increasingly worldwide intricate smartphone market, self-research is the base foundation of self-independence. Therefore, the point to be noted is that can China counter the action against Huawei or else it will impact the financial growth of other firms.
Currently, the well-known mobile chipset firms are MediaTek and Qualcomm who extensively utilizes US backed technology, but there are some apps available that are fully Chinese. According to a report of GizChina, Cao Haitao, a reputed professor of Mindu Scholars at Minjiang University, mentioned during an interview that 30 percent of smartphones sold in the Chinese region must utilize Chinese apps. He further added that any brand who does not abide by this strategy must be ready to pay 400 percent more tax. Haitao suggested that the sole purpose behind this strategy is to boost the Chinese market. When the market will have growth, income will be increased, which in further will boost investment in R&D. If this strategy is not followed then other countries will control the Chinese market.
Back on Friday, the Joe Biden government showcased a set of export controls that includes measures to wipe out China from certain chipsets manufactured in any parts of the world with US technology and tools. This is an effort to reduce China’s defense and technological enhancements. According to an exclusive report of Reuters published on Business Standard, the rules, some of which go into effect immediately, build on restrictions sent in letters earlier this year to top toolmakers KLA Corp, Lam Research Corp and Applied Materials Inc, effectively requiring them to halt shipments of equipment to wholly Chinese-owned factories producing advanced logic chips.
Now, going further, Haitao said that the global semiconductor industry is backed by various resources in Taiwan. The average daily water consumption of TSMC’s factories last year was as high as about 150,000 tons. The entire Hsinchu Science and Technology Park enterprises consume 140,000 tons of water a day, reports GizChina. Ex-director of the Taiwan Economic Research Institute of Huaqiao University and director of the National Taiwan Research Association, Chen Keming, said that the high-valuation of TSMC is an impediment even though the company is a tycoon in the semiconductor sector.
Around 80 percent of TSMC’ shareholders are from the foreign countries and the rest of the share is in the hands of Taiwan. The picture shows that 80 percent of the company’s profit is grabbed by the foriegn firms.
