Vietnam provided more than 10% of the number of semiconductor chips imported by the US
The US is diversifying its semiconductor chip suppliers by turning to Thailand, Vietnam, India and Cambodia, instead of relying largely on Taiwan and China as before.
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U.S. semiconductor chip imports rose 17% year-over-year to $4.86 billion in February, according to US Census data. Asian countries provided 83% of them. India recorded a 34-fold increased in semiconductor shipments to $152 million, while Cambodia posted an impressive growth of 698% - rising to 8th place among semiconductor chip suppliers to the US. This is Cambodia's most impressive growth.
Vietnam and Thailand both have much larger semiconductor chip manufacturing markets than the above countries, recording an increase of 75% and 62% respectively in the number of semiconductor chips imported into the US. Vietnam accounted for more than 10% of US semiconductor chip imports for 7 consecutive months.
According to US Census data in February, Vietnam is the third largest supplier of semiconductor chips to the US, after Malaysia and Taiwan. Malaysia is still America's top semiconductor chip supplier, but its market share fell to 20% in February.
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Top 10 semiconductor chip suppliers to the US. India, Cambodia, Vietnam and Thailand are the four countries with the highest growth. Source: US Census
This is considered a move to "disperse" semiconductor chip suppliers, in the context that US officials have repeatedly expressed concern that the US is overly dependent on some foreign suppliers, such as Taiwan and South Korea, to produce the most advanced semiconductor chip. Taiwan increased semiconductor chip shipments to the US by 4.3% year-over-year and still accounts for 15% of US imports.
Semiconductor chips are an important component in electronic devices, such as computers, phones, and household goods. According to Bloomberg, the deteriorating relationship between the US and Chinese authorities has forced each country to rethink its supply strategy around semiconductors when Taiwan Semiconductor Manufacturing Company (TSMC) alone has accounts for about 50% of global semiconductor chip production.