The Impact of Taiwanese Semiconductor Production Policy on Global Economy and Foreign Relations

Faculty Mentor Name

Hong Zhan

Format Preference

Poster

Abstract

Advanced semiconductors are essential to commercial and military technologies worldwide. Taiwan Semiconductor Manufacturing Company (TSMC) accounts for 90% of the world’s chip production. However, the supply chains that Taiwan uses for its chip industry are experiencing many types of threats. These threats include Chinese aggression like blockades and poaching, COVID-19 economic impacts, and a shortage of raw materials like germanium and silicon. Taiwan realizes the gravity of these threats and already has some policies in place to combat them. Taiwan must still work with its international partners to secure and grow these advanced semiconductor supply chains. Taiwan is in limbo between the U.S. and China and must cooperate with both superpowers to preserve its industry. This project will focus on the current and future policies that Taiwan will use to protect its supply chains and their global impact. The world relies on Taiwan for advanced semiconductors, so even a minor policy change could have ripple effects worldwide. Understanding the implications of these policies will better allow the U.S. to collaborate with Taiwan to expand and protect these supply chains by addressing these threats together. This will be done by establishing threats and current policies. Taiwan can also collaborate with the U.S. government, companies, and the military in the future to sustain the advanced semiconductor industry.

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The Impact of Taiwanese Semiconductor Production Policy on Global Economy and Foreign Relations

Advanced semiconductors are essential to commercial and military technologies worldwide. Taiwan Semiconductor Manufacturing Company (TSMC) accounts for 90% of the world’s chip production. However, the supply chains that Taiwan uses for its chip industry are experiencing many types of threats. These threats include Chinese aggression like blockades and poaching, COVID-19 economic impacts, and a shortage of raw materials like germanium and silicon. Taiwan realizes the gravity of these threats and already has some policies in place to combat them. Taiwan must still work with its international partners to secure and grow these advanced semiconductor supply chains. Taiwan is in limbo between the U.S. and China and must cooperate with both superpowers to preserve its industry. This project will focus on the current and future policies that Taiwan will use to protect its supply chains and their global impact. The world relies on Taiwan for advanced semiconductors, so even a minor policy change could have ripple effects worldwide. Understanding the implications of these policies will better allow the U.S. to collaborate with Taiwan to expand and protect these supply chains by addressing these threats together. This will be done by establishing threats and current policies. Taiwan can also collaborate with the U.S. government, companies, and the military in the future to sustain the advanced semiconductor industry.