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Is Taiwan a Ticking Time Bomb in the Semiconductor Supply Chain?
The overwhelming reliance on Taiwan for critical supply elements creates a combustible situation for the global economy.
thediplomat.com, Feb. 27, 2021 –
Huawei and the threat it poses to security may grab more headlines, but the semiconductor industry that underwrites the much-debated 5G transition – and nearly every technological advancement we see ahead of us – is an issue of even more vital importance. Both the United States and China recognize this.
China's designs on self-sufficiency explicitly include not only self-sufficiency, but a pre-eminent role in semiconductor technology. Indeed, its controversial "Made in China 2025" push included a goal to domestically produce 70 percent of the chips demanded by domestic firms. Such a drastic shift would certainly ripple through global markets, but progress toward that lofty goal has proven elusive despite the billions poured into the industry. In fact, only 6 percent of semiconductors used in 2020 by Chinese firms were made in China.
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