Chipmakers from Taiwan, South Korea, Japan see high-tech decoupling with China as inevitable

Major chipmakers Taiwan, South Korea, and Japan expect to decouple with China in advanced industries involving sensitive technology due to concerns about Beijing's rapid military modernization.

The US is making a "Chip 4" alliance with Taiwan, South Korea, and Japan for a possible global chip crunch in case of a contingency between Taiwan and China.

The issue of supply chain resiliency was addressed after chip shortages exacerbated by Russia's invasion of Ukraine hit automobile and other industries hard.

Last month, the US Commerce Department announced a sweeping list of new export controls targeting China's chip and supercomputing industries.

The move could restrict China's ability to purchase and manufacture certain high-end chips used in military applications.

Although China manufactures some semiconductors, its foundries are not capable of manufacturing the most advanced logic chips. Beijing heavily relies on Taipei for advanced semiconductors needed to modernize its military, as well as software and tools from the United States.

The US has called on its allies to comply with their export controls to restrict China's access to advanced semiconductor technologies and impose similar restrictions, according to US Commerce Secretary Gina Raimondo.

Taiwan's Economy Minister Wang Mei-hua has said the restrictions only affect specific chips used in advanced fields such as supercomputing and artificial intelligence but not the larger world of chips for consumer electronics.

Taiwanese firms will abide by the US export controls, Wang said.

Russia's invasion of Ukraine and supply chain disruptions in the chip industry have sparked fears about the consequences if China invades Taiwan.