Taiwan’s exceptional expertise in semiconductor manufacturing has propelled the nation to a paramount position of global economic significance.
With renowned foundries such as the Taiwan Semiconductor Manufacturing Co (TSMC) spearheading global high-end chip production, Taiwan’s dominance in this sector has not only catalyzed substantial economic growth, but also attracted considerable international attention and strategic interest.
Nevertheless, Taiwan’s semiconductor industry is confronting potential challenges. The global shortage of high-end chips, fueled by surging demand in sectors such as artificial intelligence (AI), underscores the industry’s indispensable role in the global economy and the urgent need for solutions.
At the same time, competitors are escalating their endeavors to narrow the technological gap, investing substantially in advanced technology and production capacities, thereby intensifying the competitive landscape in the semiconductor sector.
Is Taiwan equipped to uphold its competitive advantage in this high-stakes arena? This hinges upon its capacity to not only innovate dynamically, but also to swiftly scale up production capabilities and adeptly navigate intricate geopolitical dynamics.
Taiwan’s strategic maneuvers in the future would exert a profound influence on the trajectory of the global technology and manufacturing landscapes.
The prevailing shortage of high-end chips represents an opportunity for Taiwan’s semiconductor manufacturers to solidify their global dominance.
To bolster resilience, Taiwan should embark on a multifaceted approach, diversifying its production capacity across a broader array of domestic fabs while fostering robust partnerships with local governments.
Through the expansion and modernization of facilities, the semiconductor industry can significantly amplify its output, alleviating the strain on individual foundries.
Moreover, fostering deeper collaborations with international counterparts would inject added stability and adaptability into the intricate web of the supply chain.
Taiwan must adopt a forward-thinking approach to fortify its competitive edge. Central to this endeavor is a steadfast commitment to investing substantially in cutting-edge research and development (R&D).
Concurrently, nurturing and cultivating a highly adept talent pool comprising proficient engineers and scientists through comprehensive educational and training programs are imperative steps toward propelling technological breakthroughs.
Facilitating seamless collaboration among industry stalwarts, academic institutions and government bodies is essential for nurturing a fertile ecosystem conducive to innovation and sustained progress.
Also important is the establishment of a resilient and sustainable supply chain. This entails ensuring a consistent flow of raw materials, bolstering manufacturing capabilities and fervently embracing transformative technologies such as AI and quantum computing.
Proactive government policies that staunchly support research and development initiatives, furnish ample funding avenues and foster synergistic public-private partnerships would be instrumental here.
Geopolitical considerations inject an added layer of intricacy. The ongoing geopolitical tensions among major global powers loom ominously over Taiwan’s economic trajectory, causing uncertainty and risks.
Taiwan must diversify its supply chains and bolster collaboration with other nations. By fortifying economic ties with countries sharing strategic interests, Taiwan can forge more resilient and dependable streams of raw materials and manufacturing inputs. Additionally, the pursuit of strategic trade agreements and alliances with burgeoning markets can unlock fresh avenues for expansion.
Furthermore, investing in bolstering domestic capabilities to produce crucial raw materials and cutting-edge manufacturing components would promote self-sufficiency and diminishing reliance on external sources.
Sustaining Taiwan’s preeminence in the semiconductor sphere demands a multifaceted approach. By capitalizing on this opportune moment, Taiwan can cement its standing as a front-runner in the global semiconductor marathon.
Darson Chiu is director-general of the Confederation of Asia-Pacific Chambers of Commerce and Industry.
The return of US president-elect Donald Trump to the White House has injected a new wave of anxiety across the Taiwan Strait. For Taiwan, an island whose very survival depends on the delicate and strategic support from the US, Trump’s election victory raises a cascade of questions and fears about what lies ahead. His approach to international relations — grounded in transactional and unpredictable policies — poses unique risks to Taiwan’s stability, economic prosperity and geopolitical standing. Trump’s first term left a complicated legacy in the region. On the one hand, his administration ramped up arms sales to Taiwan and sanctioned
The US election result will significantly impact its foreign policy with global implications. As tensions escalate in the Taiwan Strait and conflicts elsewhere draw attention away from the western Pacific, Taiwan was closely monitoring the election, as many believe that whoever won would confront an increasingly assertive China, especially with speculation over a potential escalation in or around 2027. A second Donald Trump presidency naturally raises questions concerning the future of US policy toward China and Taiwan, with Trump displaying mixed signals as to his position on the cross-strait conflict. US foreign policy would also depend on Trump’s Cabinet and
The Taiwanese have proven to be resilient in the face of disasters and they have resisted continuing attempts to subordinate Taiwan to the People’s Republic of China (PRC). Nonetheless, the Taiwanese can and should do more to become even more resilient and to be better prepared for resistance should the Chinese Communist Party (CCP) try to annex Taiwan. President William Lai (賴清德) argues that the Taiwanese should determine their own fate. This position continues the Democratic Progressive Party’s (DPP) tradition of opposing the CCP’s annexation of Taiwan. Lai challenges the CCP’s narrative by stating that Taiwan is not subordinate to the
Republican candidate and former US president Donald Trump is to be the 47th president of the US after beating his Democratic rival, US Vice President Kamala Harris, in the election on Tuesday. Trump’s thumping victory — winning 295 Electoral College votes against Harris’ 226 as of press time last night, along with the Republicans winning control of the US Senate and possibly the House of Representatives — is a remarkable political comeback from his 2020 defeat to US President Joe Biden, and means Trump has a strong political mandate to implement his agenda. What does Trump’s victory mean for Taiwan, Asia, deterrence