Taiwan hopes to offer China a run for its cash — no less than within the quick run.

The island’s minister of financial system advised CNBC that Taiwan will stay aggressive within the semiconductor house, at the same time as China ramps up its chip ambitions.

Wang Mei-hua, head of the ministry of financial affairs, pointed to Taiwan Semiconductor Manufacturing Company, and stated the world’s largest contract chip maker is “globally aggressive in foundry manufacturing resulting from their technical breakthroughs.”

“Taiwan will proceed creating our semiconductor business. Within the quick time period, I feel we’ll stay aggressive,” she advised CNBC’s Emily Tan on Wednesday.

Requested if China’s push to develop its semiconductor industry raises considerations for Taiwan, she identified that Taiwan’s chipmaking sector has been developed over a number of many years and is powerful.

“Now we have a really environment friendly manufacturing base,” she stated, in accordance with a translation of her feedback in Mandarin.

Wang additionally stated Taiwanese corporations are doing their greatest to satisfy orders for auto chips amid a worldwide scarcity.

Covid-19 lockdowns final yr created a surge in demand for shopper electronics, which triggered a shortfall within the semiconductor sector. In consequence, some carmakers have been forced to cut or slow production.

Demand for auto chips fell in April 2020, however picked up steam in August and September, Wang stated.

“It is not simple to make chips. It would not come out the subsequent day after you place an order,” she defined. “When the orders for auto chips have been minimize, different info and communications know-how orders got here in and took up the capability.”

“Our chip producers are already producing at full capability,” she stated. “However we’ve got had discussions with them, they’re conscious that by supplying extra auto chips, it would not simply assist the worldwide automobile business, but additionally the worldwide financial restoration.”

Taiwan and its chip suppliers have additionally met with the U.S. for discussions. “I feel Taiwan may be very prepared to be a pleasant provide chain accomplice within the semiconductor house,” she added.

Wang was optimistic in regards to the outlook for Taiwan’s exports, which benefited from rising demand for laptops resulting from lockdowns and work-from-home preparations.

“From final August until January this yr, our exports have elevated dramatically for six consecutive months. This has by no means occurred earlier than,” stated Wang.

Reuters reported that Taiwan’s exports shot up in January by almost 37% year-on-year to hit $34.27 billion, the highest monthly figure on record.

“Up to now, our exports have been doing nice — not simply in our excessive know-how, but additionally in lots of different sectors together with textile petrochemicals, machineries,” she stated. “World inventories have been dropping and the financial system is recovering, even our shipbuilding enterprise are rising at double-digits. That is the place we’re proper now.”

— CNBC’s Arjun Kharpal and Michael Wayland contributed to this report.