In the dynamic landscape of global geopolitics, Taiwan has emerged as a pivotal player in the U.S.-China technology war, particularly in the realm of semiconductor production. With a remarkable contribution of over 60% of advanced chips, Taiwan has positioned itself as a critical hub for technologies driving artificial intelligence, 5G, and advanced military weaponry. This paper by Jiann-Chyuan Wang, delves into the intricate interplay between the U.S.-China trade and technology war, the Chips & Science Act, and Taiwan’s semiconductor industry.
The U.S.-China trade war, initiated in 2018, was initially anticipated to have adverse effects on Taiwan’s semiconductor sector. However, a surprising turn of events occurred as a consequence of the high tariff rates imposed by the U.S. on China’s semiconductor exports. This resulted in a significant shift of orders towards Taiwan, propelling a boom in the country’s semiconductor industry. The ensuing economic and geopolitical implications have thrust Taiwan into the international spotlight.
Wang argues that individual countries, particularly in Europe, have the potential to reshape the global semiconductor landscape. By offering attractive incentives, robust infrastructure support, and implementing assertive industrial policies, these nations can attract semiconductor companies from Taiwan and Korea.
Author: Jiann-Chyuan Wang
This paper is part of the Europe in the Indo-Pacific Hub (EIPH) Guest Author Series: Access or Absence in an era of geopolitical competition: insights on critical resources, global value chains, and maritime security. Edited by Paul van Hooft, Benedetta Girardi and Alisa Hoenig.
The research for and production of this report was made possible by a financial contribution from the Taipei Representative Office in the Netherlands to the Hague Centre for Strategic Studies. The conclusions and recommendations presented in this report are the result of independent research. Responsibility for the content rests with the authors and the authors alone.