Tech firms like Apple, Amazon, Google as well as Qualcomm, NVIDIA and AMD rely heavily on Taiwanese contract manufacturers to produce up to 90% of their chips, according to Hou, who is managing director and head of tech research at the brokerage firm. It s going to be a challenging and long journey for them to diversify away, and thinking about how long it takes for the chip development and cooperation it s going to take a while, he said Monday on CNBC s Street Signs Asia.
Semiconductors are used in everything, from smartphones and computers to cars as well as home appliances.
While the United States dominates the global semiconductor market share by revenue, Asia is the manufacturing powerhouse, according to a recent report from Bank of America. Asian countries produce more than 70% of global semiconductors Taiwan and South Korea, in particular, have established unrivaled positions in high-end chip manufacturing capacity, the report said.
Tough Road Ahead for U S Firms Trying to Cut Reliance on Taiwan Chipmakers
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Tough road ahead for U S firms trying to cut reliance on Taiwan chipmakers
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Executive Yuan eyes espionage curbs
STEM THE TIDE: From 2013 to October last year, 47 of the 129 breaches of the Trade Secrets Act led to Taiwanese trade secrets reaching Chinese industries, a legislator said
By Lee Hsin-fang and Jason Pan / Staff reporters
The Executive Yuan is considering measures to prevent Chinese commercial espionage and the poaching of core technologies, especially in semiconductors and information technology, sources said.
The Executive Yuan is considering amendments to the National Security Act (國家安全法) and the Trade Secrets Act (營業秘密法) to respond to increasing reports of Chinese firms recruiting Taiwanese and stealing core technologies, the sources said.
Although Taiwan prohibits firms from China from doing business or recruiting locally without prior approval, some companies conceal their Chinese ownership to recruit workers, they said.