Taiwan’s economic story is one of extraordinary success — built on silicon, precision and trust. Over four decades, this small nation has become the beating heart of the global semiconductor industry, supplying advanced chips worldwide. Yet as nations race to localize technology and geopolitical tensions intensify, Taiwan’s strength risks becoming its Achilles’ heel. Semiconductor dominance makes it indispensable — but also dangerously exposed. The urgent question is: what comes after silicon?
The five pillars proposed here are not abstract wishes. They emerge from a simple logic: Start with Taiwan’s strengths, align them with global demand and act decisively. Taiwan has world-class engineering, an efficient healthcare system, frontline cybersecurity experience and a vibrant cultural identity. The world, meanwhile, is demanding clean energy, biotech innovation, artificial intelligence (AI)-driven productivity, digital security and cultural voices. Where Taiwan’s capabilities meet these needs lies the roadmap for diversification.
Taiwan’s coastal winds and manufacturing prowess make it a natural hub for offshore wind and smart grids. Projects like the Greater Changhua farms, backed by foreign developers such as Orsted, have drawn billions and already begun powering Taiwan Semiconductor Manufacturing Co. However, Taiwan’s energy mix still leans heavily on coal and gas, reliance on imported turbines persists and policy disputes over nuclear power fragment strategy. To lead, Taiwan must build a domestic supply chain, modernize its grid and present itself as Asia’s green tech pioneer.
Taiwan’s efficient healthcare system, and clusters in Hsinchu and Taipei’s Nangang District (南港) position it to lead in longevity science and eldercare tech. Companies such as Medigen, maker of Taiwan’s first COVID-19 vaccine, show promise, and the biotech sector generated more than US$23 billion in 2023. However, scaling requires more venture capital, streamlined regulation and international partnerships. Without them, Taiwan risks being an incubator, not a leader.
Manufacturing giants such as Foxconn and Quanta are pivoting toward smart factories and robotics. Government initiatives like the AI Taiwan Action Plan and a new four-year funding push signal intent, and the Foxconn-Nvidia supercomputing hub is a milestone. However, Taiwan still lags in software and data ecosystems. Targeted collaboration with Western firms and a focus on niche strengths — such as predictive maintenance for factories — could close the gap.
Taiwan lives on the digital front line, absorbing near-constant state-backed attacks. This has sharpened its defenses and produced global leaders like Trend Micro. International recognition is growing — Cisco plans to establish a cybersecurity center in Taiwan — but the industry still lacks a unified brand and export strategy. Taiwan could become “the Israel of Asia” in cybersecurity, but only if it turns experience into a global offering.
Taiwanese films, such as A Sun (陽光普照), and games like Detention (返校) have resonated abroad, and the Taiwan Creative Content Agency supports the sector. However, limited budgets and language barriers keep most projects from breaking out. Strategic coproductions with global platforms, and focused investment in gaming and digital media could amplify Taiwan’s voice, echoing the success of K-pop and anime.
Taiwan is not starting from scratch. Offshore wind projects are under construction, biotech firms are growing, AI hubs are emerging, cybersecurity companies are thriving and indie studios are creating. The seeds are planted.
What is missing is scale, coordination and global reach. Too often these efforts remain small, siloed or domestically focused. Without a unified strategy — akin to Singapore’s Economic Development Board — they risk stalling.
Take green technology as an example. Taiwan has pledged net zero by 2050 and attracted billions in offshore wind investment. However, the supply chain is thin, the grid is outdated and policy is divided over nuclear power. Unless government, industry and academia align, Taiwan would remain a consumer of green tech rather than a global leader. The same challenge applies across biotech, AI, cybersecurity and cultural exports.
None of this would happen overnight, but the path forward is not about abandoning semiconductors. It is about building a broader foundation beneath them.
The stakes are existential. A Taiwan reliant solely on chips is a target. A Taiwan with multiple pillars is resilient. Biotech, green tech, AI, cybersecurity and cultural exports can make Taiwan not just the world’s chipmaker, but a model small nation: nimble, creative and unyieldingly free.
The world marvels at Taiwan’s technological brilliance. Now it must also see its ambition. Policymakers, industry leaders and citizens must rally behind a bold vision: a Taiwan that shapes the future, not just powers it.
John Cheng is a retired businessman from Hong Kong now living in Taiwan.
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