Taiwan still central to Singapore chipmakers despite geopolitical tensions

TAIWAN remains a crucial supply chain link for semiconductor firms in Singapore despite tensions in the Taiwan Strait – though the sector’s long-running diversification efforts could gain urgency if tensions with mainland China persist or result in an extended blockade.

“Taiwan has a long-standing and solid position in the world of semiconductors given that it constitutes about 25 per cent of the global semiconductor production. Taiwan will remain a very pivotal link to most companies,” said Ang Wee Seng, executive director of the Singapore Semiconductor Industry Association (SSIA).

China began conducting military drills in the seas and airspace around Taiwan on Aug 4, following Speaker of the United States House of Representatives Nancy Pelosi’s visit to the island. On Aug 10, the Chinese military announced that it had “successfully completed various tasks” around Taiwan, but plans to conduct regular patrols, as well as to continue further training and combat preparation.