GlobalWafers Expands Overseas Chip-Making Capacity Amid Rising Tariff Fears: A Strategic Response to Trade Measures

GlobalWafers, a Taiwan-based company, is increasing its chip production capabilities abroad due to concerns about potential tariffs. The company, which ranks third in the world for silicon wafer supply, is developing its facilities in both the US and Europe. The company's CEO, Doris Hsu, has expressed worries about a possible 'special tariff'.

GlobalWafers is proactively expanding its production abroad, anticipating an increase in chip material tariffs. This highlights the increasing belief that reciprocal trade actions will disturb the semiconductor supply chain in the future.

The third biggest silicon wafer supplier globally is broadening its manufacturing facilities in six out of the nine nations it operates in. This includes two facilities in the United States, one in Italy, and one in Denmark.

Doris Hsu, GlobalWafers' Chairwoman and CEO, expressed to Bloomberg Television her view that specific tariffs could be applied not only in the United States but also in other nations within the industry. She suggested that these potential tariffs could be circumvented through a transition to domestic manufacturing.

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

Global governments are progressively seeing semiconductor technology as a matter of national security in the wake of chip scarcities during and post the Covid-19 pandemic, which severely impacted various sectors, notably auto production. Heightened geopolitical conflicts have further amplified the importance.