MediaTek CEO sees incremental move away from Taiwan

Tensions between China and the United States are pushing some manufacturing companies to talk about expanding some of their supply chain beyond Taiwan, although it’s “incremental,” the head of Taiwan’s most important smartphone chip design firm told Reuters over the weekend.

Some of the “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 MediaTek Chief Executive Rick Tsai. “I think in those cases, we will have to find multiple sources for the same chip if the business warrants that.”

It’s happening already but not at large scale, he added.

Tsai and senior executives talked to Reuters on the sidelines of a media and analyst event the company was hosting in California’s wine valley Sonoma Valley on Friday. The company has been pushing to grow its U.S. business, and Tsai said the goal was to triple or quadruple sales, although he didn’t give a time frame.


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