Taiwan’s top technology official, Wu Cheng-wen, emphasized the importance of international collaboration in the semiconductor industry, countering assertions that a single nation should dominate this critical sector. This response comes on the heels of U.S. President Donald Trump’s remarks criticizing Taiwan’s significant role in global chip manufacturing and expressing a desire to repatriate chip production to the United States.
Taiwan’s Stance on Semiconductor Collaboration
Wu Cheng-wen, head of Taiwan’s National Science and Technology Council, highlighted the intricate and interdependent nature of the semiconductor industry. He stated, “The semiconductor industry is highly complex and requires precise specialization and division of labor. Given that each country has its own unique industrial strengths, there is no need for a single nation to fully control or monopolize all technologies globally.”
Wu underscored Taiwan’s commitment to being a reliable partner within the global democratic supply chain, expressing willingness to collaborate with other nations to enhance the resilience and diversity of the semiconductor sector.
Global Semiconductor Market Dynamics
Taiwan, primarily through the Taiwan Semiconductor Manufacturing Company (TSMC), holds a substantial share of the global semiconductor market. As of 2023, Taiwan accounted for approximately 68% of advanced semiconductor foundry capacity, though this is projected to decrease to 60% by 2027 as other countries, including the U.S., expand their domestic capacities.
The United States, aiming to bolster its position in the semiconductor industry, has implemented measures such as the CHIPS and Science Act, which provides incentives for domestic chip production. This initiative seeks to reduce reliance on foreign sources and enhance national security concerning critical technologies.
Industry Experts Weigh In
Industry analysts emphasize that the semiconductor supply chain’s complexity necessitates international cooperation. No single country possesses all the necessary resources and expertise to independently manage the entire production process. Efforts to localize the industry entirely within one nation could lead to inefficiencies and increased costs.
Moreover, the rapid technological advancements and significant capital investments required in semiconductor manufacturing make it imperative for countries to leverage each other’s strengths. Collaborative approaches are seen as more viable for sustaining innovation and meeting global demand.
Taiwan’s call for a collaborative approach in the semiconductor industry highlights the interconnected nature of global technology supply chains. While nations like the United States are taking steps to enhance domestic production, the consensus among experts suggests that international cooperation remains essential for the industry’s continued growth and stability.