Compared to the wafer fabrication industry, which is highly restricted by equipment limitations, China’s IC design sector—based on the opportunities within its domestic market—appears to have a more optimistic outlook. According to DIGITIMES, the output value of China’s IC design industry reached US$35.8 billion in 2024 and is expected to grow to US$73.2 billion by 2030, achieving double-digit annual growth. From autonomous driving chips to electronic design automation (EDA) tools, China aims to cover all aspects of the semiconductor industry and cultivate domestic leaders in each field. Huawei’s HiSilicon, Cambricon (AI accelerators), Horizon Robotics (ADAS), and Silergy (often referred to as “China’s Texas Instruments”) all play key roles in this ecosystem.

Following the announcement of the reciprocal tariff policy by US President Donald Trump, South Korean companies are thoroughly reviewing their supply chains and formulating countermeasures. Enterprises with production bases in China and Vietnam may face direct impacts, raising public concern.

The US reciprocal tariff policy has unleashed significant challenges for Taiwan’s machinery industry, particularly the machine tool and component sector, which is heavily reliant on exports and dominated by small to medium-sized enterprises (SMEs). The Taiwan Machine Tool & Accessory Builders’ Association (TAMI) has characterized the situation as “nuclear-level,” demanding urgent government intervention.