The American Chips Act will have little effect on the factoryless Taiwan chip developers

The American Chips Act will have little effect on the factoryless Taiwan chip developers

After a few months of debate, the US Chip Act was finally approved by Congress and awaiting the signature of the President of the United States.

Taiwanese chip developers are used to relying on local producers at all stages. Companies working without their own production capacity tend to agree with the founder of the largest semi-conductor TSMC contractor, Morris Chan : the funds allocated under the chips law are too few to have a significant impact on the American industry – advanced technologies require more resources; they also agree with industry leaders through AMD, NVIDIA and Qualcomm: in their view, the subsidies described in the law pay too much attention to the production sector, and this is unfair to factoryless players.

Of all U.S. microelectronics developers, it seems they will benefit most from the new initiative, the creators of the analog chips led by Texas Instruments, and they will have the most visible influence on Taiwan's players. The irony is that it is in this segment that the American industry feels confident, already having an advantage over Taiwan's competitors.

Against this background, the recent actions of the largest Thai developer in MediaTek are symbolic: the company entered into a contract for the production of chips with Intel Foundation Services and announced the creation of a new microscheme development centre at an American Indiana university. MediaTek is interpreted as an attempt to balance the growing opposition between the US and the PRC – all the more so as most of the company's consumers are located in China, and other factoryless Taiwan developers are now likely to have to consider the geopolitical factor more carefully.