Taiwan Semiconductor Manufacturing Co (TSMC) is popularly known as Taiwan’s guardian angel, or alternatively as its “silicon shield.”
In both cases, the idea is that the importance of the semiconductor chips it produces is such that China would hold back from a military invasion against Taiwan for fear of destroying the source of advanced chips that it needs for its own economy to thrive; at the same time, Taiwan’s allies, including the US, EU countries and Japan, would come to its defense not just because of geopolitical considerations, but also due to concerns that a successful Chinese invasion would almost certainly lead to a halt in the supply of TSMC’s chips, either because its plants were destroyed or as they would fall into the hands of the Chinese Communist Party (CCP).
Some commentators say that it is TSMC’s importance that bolsters the CCP’s desire to take control of Taiwan, that TSMC’s very importance could work against Taiwan’s security.
The concept of the “silicon shield” is nuanced: Not all chips are made equal, nor are all semiconductor fabs, nor are all workforces with the required skills, nor are the strategic considerations of the parties involved, be they national governments or TSMC itself.
The company has already agreed to build plants in China, the US and in Japan, and this week it revealed plans to build a 12-inch wafer fab in Dresden, Germany, as part of a joint venture to be called European Semiconductor Manufacturing Co (ESMC), of which TSMC would have 70 percent ownership.
This branching out overseas might give rise to concerns that the company is diluting Taiwan’s silicon shield, but it is not as simple as that.
The decision to build fabs overseas, especially in the US, Japan and Germany, is to allay those countries’ fears of over-reliance on one source in a vital supply chain. Each one of those countries has its own specific reason not to want to be caught without needed chips.
It is important to realize, too, that the overseas fabs would not be producing the most advanced chips. ESMC is to produce chips that are suitable for the automotive industry, the lack of which caused automotive production delays during the COVID-19 pandemic. TSMC said in January that in about five years, about 20 percent of its 28-nanometer-and-below capacity would come from overseas fabs.
Not only would the most advanced, 2-nanometer semiconductors be produced in Taiwan, but the company has plans to open more fabs in the next few years. It is currently building a plant for next-generation 2-nanometer chips in Kaohsiung, plans to produce them in its Hsinchu plant and is also looking to secure a site in Taichung for a third 2-nanometer chip plant.
TSMC holds a 90 percent market share in these most advanced semiconductors, which the overseas fabs cannot produce, and it makes them under secure conditions to ensure the technology remains in Taiwan and the company keeps hold of its competitive edge.
TSMC chairman Mark Liu (劉德音) says that the company is far too invested in Taiwan, with its established technologies, facilities, researchers and skilled workforce, to be able to transport its most cutting-edge operations overseas.
The question of whether it is wise to concentrate advanced semiconductor production in Taiwan remains, but concerns over whether it is still Taiwan’s silicon shield can be disregarded, if one believes the silicon shield theory in the first place, which not everyone does.
In an interview with the New York Times, Liu said, “China will not invade Taiwan because of semiconductors. China will not not invade Taiwan because of semiconductors.”
He himself therefore rejects the idea of the silicon shield, as he does the idea that TSMC puts Taiwan at risk.
When US budget carrier Southwest Airlines last week announced a new partnership with China Airlines, Southwest’s social media were filled with comments from travelers excited by the new opportunity to visit China. Of course, China Airlines is not based in China, but in Taiwan, and the new partnership connects Taiwan Taoyuan International Airport with 30 cities across the US. At a time when China is increasing efforts on all fronts to falsely label Taiwan as “China” in all arenas, Taiwan does itself no favors by having its flagship carrier named China Airlines. The Ministry of Foreign Affairs is eager to jump at
The muting of the line “I’m from Taiwan” (我台灣來欸), sung in Hoklo (commonly known as Taiwanese), during a performance at the closing ceremony of the World Masters Games in New Taipei City on May 31 has sparked a public outcry. The lyric from the well-known song All Eyes on Me (世界都看見) — originally written and performed by Taiwanese hip-hop group Nine One One (玖壹壹) — was muted twice, while the subtitles on the screen showed an alternate line, “we come here together” (阮作伙來欸), which was not sung. The song, performed at the ceremony by a cheerleading group, was the theme
Secretary of State Marco Rubio raised eyebrows recently when he declared the era of American unipolarity over. He described America’s unrivaled dominance of the international system as an anomaly that was created by the collapse of the Soviet Union at the end of the Cold War. Now, he observed, the United States was returning to a more multipolar world where there are great powers in different parts of the planet. He pointed to China and Russia, as well as “rogue states like Iran and North Korea” as examples of countries the United States must contend with. This all begs the question:
Liberals have wasted no time in pointing to Karol Nawrocki’s lack of qualifications for his new job as president of Poland. He has never previously held political office. He won by the narrowest of margins, with 50.9 percent of the vote. However, Nawrocki possesses the one qualification that many national populists value above all other: a taste for physical strength laced with violence. Nawrocki is a former boxer who still likes to go a few rounds. He is also such an enthusiastic soccer supporter that he reportedly got the logos of his two favorite teams — Chelsea and Lechia Gdansk —
RSS