Four Asian Countries Lead in US Chip Diversification Move
Thailand, Vietnam, India, and Cambodia have emerged as early winners this year as semiconductor production begins to move away from traditional centers such as Taiwan and China.
Tweet on Asian chip production
Thailand, Vietnam, India & Cambodia emerged as early winners this year as semiconductor production begins to move away from traditional centers such as Taiwan & China.
US imports of chips grew 17% from last year to $4.8 billion in February, according to US Census data#chips pic.twitter.com/lX2olks0KZ
— The_Journalbiz (@the_journalbiz) April 10, 2023
WTST Semicondutor chart market projections
US imports of chips grew 17% from last year to $4.86 billion in February, according to US Census data, with Asia accounting for 83% of that total. India saw its semiconductor shipments increase 34 times to $152 million, while Cambodia clocked in an impressive 698% growth, falling just shy of Japan at $166 million, an amount that would be unheard of in years past.
Vietnam and Thailand, which have much bigger chipmaking market slices, increased their US trade in the sector by 75% and 62%, respectively. Vietnam has accounted for over 10% of US imports for seven straight months.
US officials have expressed growing concern about their country’s overreliance on overseas suppliers, such as Taiwan and South Korea, for the most advanced chipmaking. “Our dependence on Taiwan for chips is untenable and unsafe,” US Commerce Secretary Gina Raimondo told a crowd at the annual Aspen Security Forum in Colorado in July.
- Asia accounted for 83% of US Chip Imports in February
- India, Cambodia, Vietnam, and Thailand saw the largest increases
Semiconductors are a critical smart component in everything from computers and phones to home appliances, and deteriorating relations between Washington and Beijing have forced each nation to rethink its supply strategies around them. Taiwan, often a flashpoint between the two, increased shipments to America by 4.3% from last year and accounted for 15% of its imports.
