CEO of MediaTek: The shift away from Taiwan’s chip industry is gradually increasing

The head of Taiwan’s most important smartphone chip design company, MediaTek, told Reuters late last week that tensions between China and the United States are forcing some manufacturing companies to decide to move part of their supply chain from Taiwan, and this trend is gradually increasing.

Rick TsaiThe executive director of Mediatek said:

Some very large equipment manufacturers require suppliers to have multiple sources such as Taiwan and the United States, Germany or Europe. I think we need to find multiple sources to make a chip if our business is going to be guaranteed this way. This has happened now, but not on a large scale.

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Tsai And senior MediaTech executives spoke to Reuters on the sidelines of a media and analytics event the company hosted in California on Friday. The company has been working hard to grow its business in the United States Tsai He says that the goal is to increase sales by three to four times, although he did not provide any timeframe for that.

to report ChannelNewsasiawhile MediaTek’s most advanced smartphone chips are made in Taiwan’s TSMC, Tsai It announced that it has outsourced the manufacturing of some of its older phone chips to GlobalFoundries, which has factories in places like the United States and Singapore. The company will also manufacture some chips through Intel’s chipmaking facilities.

Tsai He said that the Intel 16 chip manufacturing technology that Mediatek has committed to using is suitable for producing chips for smart TVs and Wi-Fi. He stated:

The production of chips for smart TVs and Wi-Fi modems is a big business for us, and I personally monitor its progress every month. These system-on-chips will be produced in the second half of 2024 at Intel’s chip manufacturing facility in Ireland.

Tsai It said MediaTek would also make chips at TSMC’s Arizona plant, but warned that a complete shift away from Taiwan, the world’s most important region for making high-end chips, was not realistic.

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