GlobalWafers Expands Overseas Amid Tariff Concerns: Taiwan’s Silicon Giant Bolsters Factories in US, Europe to Mitigate Potential Trade Disruptions

GlobalWafers from Taiwan is increasing its semiconductor production capabilities abroad due to concerns over potential tariffs. The company, which ranks as the world's third largest silicon wafer supplier, is extending its manufacturing facilities in the US and Europe. Its CEO, Doris Hsu, has expressed worry regarding a possible 'special tariff'.

GlobalWafers is proactively expanding its manufacturing operations abroad, preparing for potential increases in chip material tariffs. This highlights the rising belief that reciprocal trade actions could disrupt the semiconductor supply chain in the near future.

The third biggest supplier of silicon wafers globally is growing its production facilities in six out of the nine nations it has a presence in. This includes two plants in the United States, and one each in Italy and Denmark.

Doris Hsu, the Chairwoman and CEO of GlobalWafers, expressed to Bloomberg Television that she anticipates unique tariffs to be introduced not just in the US, but also in other nations within the industry. She further suggested that such potential tariffs could be circumvented by transitioning to domestic production.

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The world's biggest contract chip manufacturer, TSMC, has officially opened its first facility in Japan.

The global chip shortage during and post the Covid-19 pandemic has led to many governments perceiving semiconductor technology as a matter of national security. This shortage has significantly impacted several sectors, particularly the automobile industry. The escalating geopolitical conflicts have further amplified the significance of this issue.