A recent article from a German media outlet discussed the importance of Taiwan in the semiconductor and AI fields. The article pointed out that geopolitical risks have prompted governments around the world to strengthen domestic chip manufacturing. However, Taiwan’s advantage in this area is difficult to replace in the short term, making it crucial to protect Taiwan’s stability and autonomy for the future of the global tech industry.
The Swiss newspaper “Neue Zürcher Zeitung” Tokyo correspondent Martin Koelling recently wrote an article titled “Semiconductor Production Diversification Dilemma: No Taiwan, No Artificial Intelligence,” which delves into how Taiwan’s tech industry and geopolitics impact the world.
The author highlighted the participation of top executives from American semiconductor companies such as Intel, AMD, and Nvidia CEO Jensen Huang in events like the Taipei International Computer Show (COMPUTEX) to illustrate Taiwan’s key position in the global AI landscape.
Amidst tensions in the Taiwan Strait, governments worldwide are concerned about the high dependency on Taiwan’s supply chain and the risk of a collapse in the global chip and computer supply chain without Taiwan.
Koelling pointed out that TSMC is a major manufacturer of advanced chips, controlling around two-thirds of the global market for chips with a process node of 7 nanometers or less. In the development of AI, which requires higher computing power and lower energy consumption, Taiwan’s market share is close to 90%.
Given the threat from the Chinese Communist Party (CCP), the global reliance on Taiwanese chips has made governments uneasy, leading them to strive to increase domestic chip production capacity to reduce dependence on Taiwan. In recent years, Germany has successfully attracted Intel and TSMC to build factories locally, aiming to achieve diversification in the chip supply chain.
However, the rise of AI could render these efforts futile.
Koelling believes that Taiwan’s current AI supply chain ecosystem is efficient and comprehensive, covering aspects from design, manufacturing to supply, with companies like Acer, Asus, Gigabyte, and MediaTek also holding leading positions in their respective fields globally.
Additionally, Taiwan has critical suppliers like Delta Electronics, which ensures efficient operation of data centers and AI systems with its crucial technologies in energy management, DC converters, and data server cooling systems.
The mastery of key technologies and the integrity of the AI supply chain ecosystem in Taiwan have led to increased investments from international tech giants, despite the military threat from China. Nvidia plans to build two AI supercomputers in Taiwan, while AMD is planning to establish a research and development center in Taiwan. The global reliance on Taiwan’s technology and production capacity is only expected to grow in the future.
In conclusion, the article noted that President Lai Ching-te recently committed to transforming Taiwan into an “AI island.” However, Taiwan has enjoyed a long-standing advantage in the semiconductor industry. It is challenging for companies like Samsung Electronics to steal clients from TSMC, and Intel and Japan’s semiconductor national team Rapidus still need to prove their production capacity and price competitiveness.
Apart from bringing 3-nanometer technology to the United States, TSMC’s latest 2-nanometer process and most of its production capacity remain in Taiwan. The talent pool related to AI chip manufacturing and the complete supply chain ecosystem cannot be easily replaced by any country in the short term, not to mention the importance of TSMC’s headquarters in the operation of new factories in other overseas countries.
Therefore, preventing the Chinese Communist Party from taking over Taiwan is crucial for the interests of various countries. Safeguarding Taiwan’s stability and autonomy is vital for the future of the global tech industry. Losing technology and knowledge from Taiwan would not only seriously threaten the semiconductor industry but also plunge the critical AI sector, valued globally, into crisis.