US-led semiconductor alliance setting up ‘early warning system’ to protect supply chains, Taiwan says
- The warning system will help ensure semiconductor supply for cars and could cover chipmaking raw materials and manufacturing equipment
- The government-to-government notification system is thought to be a world first, but is not expected to impact mainland China, industry experts say
A Washington-led semiconductor alliance including Taiwan, Japan and South Korea will set up an early warning system to prevent disruptions to the supply of tech hardware components that have become the centrepiece of the US-China tech war.
The warning system between the “Chip 4” dialogue partners would help ensure the supply of semiconductor chips for cars and could cover chipmaking raw materials and manufacturing equipment, Taiwan’s Ministry of Economic Affairs said on Monday.
“We’re talking about 100-plus different materials you need to get and from a lot of different sources,” said Sean Su, an independent tech analyst in Taiwan. “It’s not a walk in the park. It’s highly complicated and very global.”
The new development comes against a backdrop of deepening tensions between China and the United States. The two countries have been locked in a tech war since 2018, with both seeking mastery over semiconductors and other types of technology that power the modern economy.
An early warning system is not expected to impact mainland China, said James Chin, a professor of Asian studies at the University of Tasmania in Australia. “The Chinese are strong believers in their own ecosystem,” he said.