Is China independent concerning semi conductors? Is the USA dependent from Taiwan?

 

Is China independent concerning semi conductors? Is the USA dependent from Taiwan?

Both China and the United States remain deeply interconnected within the global semiconductor supply chain, with neither currently having full independence. While both are aggressively pursuing self-sufficiency, they face different structural challenges as of March 2026.

 

China's Status: Rapid Growth, Not Full Independence

China has made significant strides in domestic chip production, but it is not yet fully independent, especially for cutting-edge technology.

Self-Sufficiency Gap: Despite a goal of 70% self-sufficiency by 2025, estimates suggest domestic suppliers currently meet roughly 14% to 35% of China's total demand.

Production Volume: China produced a record 484.3 billion chip units in 2025, an 85% increase since 2020.

Leading Edge vs. Mature Nodes: China is increasingly self-sufficient in "mature-process" chips used in cars and home appliances. However, it still relies on foreign technology for advanced chips (under 7nm) and critical tools like lithography.

Tooling Success: Domestic manufacturing equipment share surged to 35% by the end of 2025, exceeding government targets.

 

USA Status: Strategic Reshoring and Taiwan Ties

The U.S. remains the global leader in chip design and software but is working to reduce its heavy reliance on East Asian manufacturing, particularly Taiwan.

The Taiwan Link: As of late 2025, approximately 44% of U.S. logic chip imports came from Taiwan. The U.S. is strategically dependent on Taiwan for nearly all the world's most advanced semiconductors.

2026 Strategic Agreement: In January 2026, the U.S. and Taiwan signed a landmark deal where Taiwanese firms like TSMC committed to investing $250 billion in U.S.-based manufacturing.

Capacity Growth: Supported by the CHIPS and Science Act, U.S. fab capacity is projected to triple by 2032, the highest growth rate in the world.

Investment Surge: Since 2020, companies have announced over $640 billion in private investments for 140+ projects across 30 U.S. states