The Role of Semiconductor Technologies in Taiwan’s Development

Abstract

The purpose of this article is to examine the role of semiconductor technologies in Taiwan’s development. The research method is descriptive–analytical, and data were collected using library resources. The results indicate that one of the main arenas of global competition is the South China Sea region, where intense rivalry between the United States and China has been underway over the past several decades. Within this context, Taiwan—as a territory claimed by China—stands at the center of these competitive dynamics. Moreover, the rapid growth of Taiwan in the electronics industry, particularly in semiconductors, has further complicated the competitive equations between China and the United States. At present, Taiwan controls 62 percent of global chip production, supplying a major share of worldwide demand. The Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest contract chip producer and the most valuable publicly listed company in Asia, with a market value of 600 billion USD, and it appears likely to maintain this position in the coming years. In fact, much of the global semiconductor supply chain is dependent on Taiwan. This position has allowed Taiwan to play a pivotal role in the strategic rivalry between China and the United States. The United States is concerned that if China gains control over Taiwan, it could dominate the global semiconductor industry and its underlying technologies. Conversely, China fears that the geographical separation between Taiwan and the Chinese mainland could lead to disruptions in its access to chips during times of crisis, thereby creating severe challenges for its electronics industries.