Four Asian countries lead in US chip diversification move away from Taiwan, China

Published: Updated:
Read Mode
100% Font Size
2 min read

Thailand, Vietnam, India, and Cambodia have emerged as early winners this year as semiconductor production begins to move away from traditional centers such as Taiwan and China.

US imports of chips grew 17 percent from last year to $4.86 billion in February, according to US Census data, with Asia accounting for 83 percent of that total. India saw its semiconductor shipments increase 34 times to $152 million, while Cambodia clocked in an impressive 698 percent growth, falling just shy of Japan at $166 million, an amount that would be unheard of in years past.

For the latest headlines, follow our Google News channel online or via the app.

Vietnam and Thailand, which both have much bigger slices of the chipmaking market, increased their US trade in the sector by 75 percent and 62 percent, respectively. Vietnam has accounted for over 10 percent of US imports for seven straight months.

US officials have expressed growing concern about their country’s overreliance on overseas suppliers, such as Taiwan and South Korea, for the most advanced chipmaking. “Our dependence on Taiwan for chips is untenable and unsafe,” US Commerce Secretary Gina Raimondo told a crowd at the annual Aspen Security Forum in Colorado in July.

The February figures are the latest to show the US diversifying its electronics supply chain, including through moves such as Apple Inc.’s gradual shift of iPhone production out of China to places like India. Malaysia, a traditional stronghold for chip packaging, still held the lead in US imports but saw its share drop to 20 percent of the February total.

Semiconductors are a critical smart component in everything from computers and phones to home appliances, and deteriorating relations between Washington and Beijing have forced each nation to rethink its supply strategies around them. Taiwan, often a flashpoint between the two, increased shipments to America by 4.3 percent from last year and accounted for 15 percent of its imports.

Read more: India expects chipmakers to start local manufacturing in two to three years

Top Content Trending