Taiwan will retain its most advanced semiconductor manufacturing domestically to remain indispensable globally, says deputy foreign minister
TAIPEI: Taiwan plans to continue manufacturing the world’s most advanced semiconductors on the island to maintain its indispensable role in the global industry.
Deputy Foreign Minister Francois Chih-chung Wu stated this commitment persists despite intense military pressure from China.
The democratic island produces over half of the world’s chips and nearly all of the most advanced ones used in smartphones and AI data centres.
This dominance is viewed as a strategic “silicon shield” against potential invasion or blockade by China, which claims Taiwan as part of its territory.
Concerns over supply chain disruptions from a Chinese attack have increased pressure for more chip production outside Taiwan.
“We will try to maintain the most advanced technology in Taiwan,” Wu told AFP in an interview.
He argued that keeping leading-edge technology at home is logical for any country, even without Taiwan’s complex geopolitical situation.
China has significantly increased military pressure with near-daily deployments of fighter jets and warships around the island.
Taiwan has responded by boosting defence spending to upgrade its military and enhance asymmetric warfare capabilities.
Wu acknowledged the island lacks sufficient land, water, and energy to meet all global chip demand with domestic fabrication plants.
He said Taiwan is therefore gradually enlarging its global investments while maintaining strong links to its home base.
Taiwan Semiconductor Manufacturing Company (TSMC) has invested in fabrication plants in the United States, Japan, and Germany.
TSMC pledged an additional USD 100 billion for US chip plants this year amid threats of tariffs from the Trump administration.
Wu noted that replicating TSMC’s success abroad is challenging due to Taiwan’s unique semiconductor manufacturing culture.
He asserted that preventing war, not moving fabrication plants, is the best way to reduce risks to the chip industry.
The island recently rejected a US proposal for a 50-50 split in chip production, according to Wu.
While the US is Taiwan’s key security partner, some Trump comments have raised doubts about American defence commitments.
Wu expressed confidence that the US and Europe would respond to a Chinese attack to protect their national interests.
“It just happens that your interest and Taiwan’s interest we share together,” he said.
He listed shared interests as the semiconductor industry, regional peace, and freedom of navigation in the Taiwan Strait.
Wu believes former US President Donald Trump increasingly understands Taiwan’s strategic importance.
“We are the core interest of China, but we are also a core interest of the US,” Wu concluded. – AFP
