Taiwan chip exports may be affected by CHIP legislation in US and Europe

The Taiwanese government warns that the export of technology and specifically chips may be affected by the CHIP legislation that is in force in the United States and Europe or is yet to come into force.

Tsai Yu-tai, the head of Statistics at Taiwan’s Directorate-General of Budget, Accounting and Statistics, says this legislation will directly and indirectly affect exports of “crucial industries in Taiwan,” writes Bloomberg. He spoke of the “uncertainty of these laws” and that it will have consequences for Taiwan’s exports. How big those consequences are expected to be is not mentioned.

This is not only the US Chips and Science Act, which was passed in the United States in August, but also the European Chips Act. An agreement was reached on this European legislation last week, although the European Parliament will have to deal with it next year. Both laws provide subsidies and tax breaks to boost the chip sector and entice producers to start producing chips in the US and Europe.

Taiwan is worried that this will affect TSMC in particular. The country is in the process of preparing for its own tax breaks, but according to Tsai, those plans are not yet finalized. Earlier this month, Taiwan made a proposal to extend existing tax cuts for companies investing in technology and r&D. With This, Taiwan hopes to strengthen its own semiconductor industry. TSMC is also building a chip factory in the US.

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