MediaTek, one of the world’s leading smartphone chipmakers, is open to the possibility of moving away from Taiwan, at least ‘incrementally.’
MediaTek is a Taiwanese firm that designs semiconductors for some of the world’s most popular smartphones. The company relies heavily on TSMC to manufacture the chips, making its supply chain heavily dependent on its home country of Taiwan.
According to Reuters, the increasing tensions between the US and China are forcing MediaTek and other companies to consider diversifying their supply chains.
“Very large (equipment manufacturers) will require their chip suppliers to have multiple sources, like from Taiwan and from U.S., or from Germany or from Europe,” said Rick Tsai, MediaTek Inc Chief Executive. “I think in those cases, we will have to find multiple sources for the same chip if the business warrants that.”
While TSMC may manufacture MediaTek’s most advanced chips, the company does rely on others for its less advanced designs. MediaTek has struck a deal with Intel to expand the use of its foundries and plans to make use of TSMC’s Arizona foundry once it’s operational. At the same time, Tsai warned TSMC’s US production would not be able to fully meet demand and replace the role Taiwan plays.
“But is that going to be enough? No. Not by far,” he said.