TAIPEI -- One of China's biggest chipmakers has warned it may have to drop orders from foreign clients next year to prioritize domestic demand, Nikkei Asia has learned, as the country pushes to build a "secure and controllable" tech supply chain.
Hua Hong Semiconductor, China's No. 2 contract chipmaker, told several of its non-Chinese clients -- including Taiwan's Holtek, a key developer of microcontroller chips -- that it will not be able to provide them with as much capacity as they may need, sources briefed on the matter told Nikkei Asia. Hua Hong warned it may even have to drop some orders from non-Chinese chip developers due to the supply constraints, the sources added, citing China's national policy to prioritize demand from local chip developers to boost supply chain resilience.
