China's power play

— 12:32 AM on April 9, 2001

Even as the US-China standoff continues, The Taipei Times reports on rising demand for chips in China.

A report issued by Dataquest says China's chip consumption rose 35 percent last year, surpassing Taiwan for the first time. Demand in Taiwan grew only 30 percent last year.

The growth in chip demand was because of a growing telecommunications, and consumer electronics, communications equipment and personal computer industries.

In spite of the growing market, in Taiwan businessmen remain cautious about China.

China is looking to increase their chip production capacity but there are several obstacles to overcome. Some of these include the following:
  • China's chipmakers can only fill 14.5 percent of the nation's demand.
  • The country's chip consumption rose 35 percent last year.
  • Beijing is backing investments totaling US$11 billion over the next few years.
  • Another reason is the low level of technology in China's chip industry.
Still wondering how the China crisis can affect the industry? No doubt it will take some time for the political situation to stabilize, both internationally and domestically. The China-Taiwan relationship remains a potential flashpoint; caution is warranted.
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