A research fellow at Academia Sinica introduced the concept of “Silicon Shield 2.0” at a security forum in Taipei on Wednesday, saying it was not “Taiwan-centric,” but seeks to integrate the nation into international supply chains.
While there is a debate over whether the “Silicon Shield” — the idea that Taiwan’s production of 90 percent of the world’s advanced chips acts as a deterrent against China — protects or increases the risk Taiwan faces, Academia Sinica’s Institute of Sociology researcher Wu Jieh-min (吳介民) said the concept should not be seen as Taiwan-centric.
“It is not just about Taiwan’s security, but about global economic stability and security,” he said at the Ketagalan Forum’s economic security panel.
Photo: CNA
The true power of the “Silicon Shield” does not lie in the nation’s semiconductor capabilities, but in the catastrophic “global consequences of disruption to the chip supply chain from any conflict over Taiwan or in the region,” he added.
Replicating Taiwan’s semiconductor ecosystem elsewhere would be too “complex, costly and time-consuming,” because it is the result of “decades of investment in the infrastructure, research, and a specialized workforce,” he said.
Therefore the US’ adoption of reshoring or friend-shoring policies — moving chip manufacturing to the US or its allies — are “far from quick fixes,” Wu said.
The immediate priority is to ensure security in the Taiwan Strait and the wider region, he added.
However, ensuring regional peace is necessary but not enough, the academic said, adding that “Taiwan must take a more active role in international cooperation.”
“Silicon Shield 2.0” seeks to elevate Taiwan’s role in global security by integrating its semiconductor ecosystem into the international network, Wu said.
Such integration is already taking place, he said, referring to the investment by Taiwan Semiconductor Manufacturing Co (TSMC) in Arizona; Kumamoto, Japan; and Dresden, Germany.
The TSMC investments should be viewed positively as an extension of Taiwan’s influence, he said.
However, Taiwan also needs to boost its participation in international security mechanisms, he added.
“Taiwan’s network of international support is bilateral and informal, which is insufficient to address the increasingly complex geopolitical situation,” the academic said.
Expanding Taiwan’s involvement in multilateral organizations would benefit the US and its allies, he said.
Meanwhile, former Slovakian prime minister Eduard Heger emphasized the importance of energy security during the panel.
The Indo-Pacific region should learn from Europe’s mistake of becoming too dependent on Russian oil, Heger said.
“I would say that we basically traded our values for cheap gas,” he said, adding that although Slovakia had a plan from 2006 to diversify, it was not taken seriously.
The price of Russian gas and oil following Russia’s invasion of Ukraine in 2022 increased from an average of 20 euros (US$22) per megawatt-hour (MWh) to 350 euros at its peak, he said.
The price of electricity also rose from between 50 and 60 euros per MWh to 1,000 euros at its peak, he added.
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