Taiwan's semiconductor sector idolised for US industry sector

Washington/Taipei – US economist Jeff Ferry said that Taiwan’s leadership in the technology-intensive semiconductor industry and its policy should be exemplary in boosting the US industrial sector. Ferry also warned that the US has lagged by focusing only on businesses in the financial sector. The emphasis should be on strengthening the manufacturing sector, like Taiwan, to improve its economic base.

A few days ago, Taiwan‘s President Tsai Ing-wen proposed enhancing cooperation, with the United States and other countries, in the field of semiconductors, which is a critical component of advanced technology. Against this backdrop, the advice of an American economist is significant.

Semiconductors are a key component in the defence, telecommunications, and electronic vehicle industries. Over the past year, rising tensions between China and the international community have affected production and supply from China. As a result, the supply chain in other sectors has also been hit, with some leading companies facing stoppages and delays in production.

Against this backdrop, Taiwan, considered a leader in semiconductor manufacturing, has started countering China by opening alliances with other countries, including the United States. While raising the issue of US backwardness, Economist Ferry targeted the country’s ‘China lobby’.

While the tax on Chinese imports will bring long-term benefits to US industry, some groups in Silicon Valley and Washington are calling for the tax to be removed, economist Ferry said. US economists have argued that the United States should reprimand these companies that the United States does not want to not rely on China, sitting on the heads of companies that make such demands for immediate corporate gain.

Ferry said that the United States and China have different long-term policies and goals. Besides, given the dictatorial regime in China, it would be better for the United States to stay away from the Chinese economy.’ He also suggested that US companies should increase their productivity instead of importing from Asian countries to take the lead in the semiconductor sector. He also gave an example of Taiwan’s industrial policy and education system for progress in the semiconductor sector. Economists Ferry said that there is a need to encourage young people in the United States to study science, technology, engineering and mathematics.