Sino-U.S. trade war, UMC: Assessing factories in the United States as appropriate

In mainland China's 'Made in China 2025' policy, the semiconductor industry is a key project. With President Trump’s intention to counteract 'Made in China 2025', the market is highly concerned about future Chinese officials’ policy toward the semiconductor industry, and TSMC and UMC have invested in China. Taiwanese manufacturers' follow-ups to the factory. UMC revealed yesterday (29th) that, if necessary, it will assess the establishment of a factory in the United States.

According to industry figures, 'Made in China 2025', targeting the semiconductor industry, aims to support local businesses through the official support of the mainland, achieve the goal of 70% self-control, greatly reduce the proportion of semiconductor imports, and set up 'big funds' through Ziguang, etc. The group took the initiative to acquire international companies.

'Made in China 2025' is regarded as a major policy for mainland officials to expand the development of the semiconductor industry, including international index factories such as Intel, Samsung, SK Hynix, and even Taiwanese manufacturers such as TSMC and UMC. In response to relevant policies, China’s investment in recent years has been strengthened. Serve local customers nearby.

For the United States intending to counteract 'Made in China 2025', Taiwanese companies are currently in the observation phase. A few days ago US Department of Commerce officials personally came to Taiwan to visit TSMC Chairman Zhang Zhongmou and the two parties exchanged opinions. TSMC has subsequently expressed that it is not happy to see trade shocks and the two sides are in harmony. Development is more positive to its development.

UMC stated that the company’s long-term production deployment strategy is based on Taiwan and globally. Currently, the trade wrestling and subsequent impact on the US and China are still under observation. UMC’s current high-end manufacturing process still focuses on Taiwan, while overseas production bases include the mainland. Japan and Singapore, among which, Xiamen is a newer factory in the mainland, and the new production line is still expanding. At present, the company is based in Taiwan and the global production strategy will remain. As for whether it is possible to join the ranks of the United States in the future. , UMC said that the future changes with the global situation, if necessary, the company will conduct an internal assessment.

The IC design industry believes that Taiwan’s electronics industry is export-oriented, with some customers in Taiwan and some in mainland China. The protectionism of the Trump administration in the United States will indirectly affect it.

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