The worldwide technology development of the future depends on Taiwan’s semiconductor manufacturing industry. The Taiwan Semiconductor Manufacturing Company (TSMC) maintains its leading market position, which has turned the Taiwan sovereignty dispute into a major worldwide economic and technological security issue. The Taiwan Strait region faces such severe disruptions which would damage worldwide supply networks, block technological progress, and create economic instability across all nations. The Taiwan issue serves as a vital factor which affects both worldwide economic security and technological advancement.

The global foundry market share of TSMC exceeds 60 per cent while the company manufactures sophisticated semiconductor chips, which Apple, Nvidia and AMD use in their products. The concentration of capabilities has led analysts to identify Taiwan as a “silicon shield” because its position in worldwide supply networks functions as a protective mechanism which prevents conflicts because any disruption would create devastating effects. The protection system remains vulnerable because any blockade, invasion, or natural disaster would stop manufacturing operations, which would trigger a chain reaction of market disruptions worldwide.

The Taiwanese semiconductor industry functions as a fundamental economic power for Taiwan, yet it creates potential risks for the country. The pandemic exposed that Taiwan’s manufacturing base supports various industries because its supply chain disruptions affected three major sectors, including automotive, defence, and consumer electronics manufacturers. The worldwide economic system recognises that Taiwan needs to stay stable because this stability enables multiple business sectors to expand their operations. The acquisition of........

© Eurasia Review