Why Are Western Firms Increasing Investment in Taiwan? Ep9

Published 07/30/2024 17:00

Provider TaiwanPlus

In 2021, the Economist dubbed Taiwan “the most dangerous place on Earth,” warning of potential outbreak of war over Taiwan as US-China tension rises. However, since 2018, major international firms have been increasing their investment in Taiwan. What is the reasoning behind increased Western investment in such a geopolitically precarious country? What are the risks and returns? Delve into industry insights backed by data and first-hand evidence on Semiconductor Geopolitics: Taiwan's View.

Up Next

What’s Behind Japan’s Chip Ambitions? - Semiconductor Geopolitics Ep1

What’s Behind Japan’s Chip Ambitions? - Semiconductor Geopolitics Ep1

Japan was once an economic powerhouse that produced 60% of the semiconductors around the globe, yet its chip manufacturing capacity today accounts for less than 10% thereof. Alarme

Why Is Japan Cooperating With the US Again? - Semiconductor Geopolitics Ep2

Why Is Japan Cooperating With the US Again? - Semiconductor Geopolitics Ep2

The trade friction between Japan and the US during the 1980s was massive. With Plaza Accord and US-Japan Semiconductor Agreement taking effect, the Japanese chip industry eventuall

Dual Insurance Strategy: The Secret To Japan’s Chip Industry Revival Ep3

Dual Insurance Strategy: The Secret To Japan’s Chip Industry Revival Ep3

Japan has decided to jump back into the semiconductor manufacturing realm, but the reality hits hard: it is 7 nodes behind from making the most advanced chips. However, the Japanes

Why Was TSMC Fab Construction in Japan So Smooth? - Semiconductor Geopolitics Ep4

Why Was TSMC Fab Construction in Japan So Smooth? - Semiconductor Geopolitics Ep4

TSMC announced its plan to build chip foundries in Kumamoto, Japan in 2021, and it delivered on schedule in early 2024. On the other hand, the construction of TSMC’s fab in Arizona

Has JASM’s Smooth Progress Changed Japan’s Semiconductor Plans? Ep5

Has JASM’s Smooth Progress Changed Japan’s Semiconductor Plans? Ep5

Compared to TSMC’s delayed fab construction in Arizona, TSMC’s foundry project in Japan has gone very smoothly, which could even lead to them building a second or third fab in Japa

A Transnational Semiconductor Ecosystem Between Taiwan and Japan? Ep6

A Transnational Semiconductor Ecosystem Between Taiwan and Japan? Ep6

Japanese material companies have always been critical suppliers for the Taiwanese chip industry, and with TSMC establishing wafer foundries in Kumamoto, Taiwan and Japan now become

TSMC’s Arizona Fab: Compromise or Historical Recurrence? Ep7

TSMC’s Arizona Fab: Compromise or Historical Recurrence? Ep7

Some worry that TSMC’s production decentralization, which is seen in the new fabs in Arizona and Kumamoto, may diminish Taiwan’s strategic importance and even affect regional stabi

The US Plan that Rattles TSMC - Semiconductor Geopolitics Ep8

The US Plan that Rattles TSMC - Semiconductor Geopolitics Ep8

Since 2018 and the signing of Section 301, Taiwan and TSMC have played a crucial role in bringing chip manufacturing back to American soil. The United States has been persistent in

Taiwan-China Interdependence in the Chip Industry - Semiconductor Geopolitics Ep10

Taiwan-China Interdependence in the Chip Industry - Semiconductor Geopolitics Ep10

Taiwan leads the world in semiconductor manufacturing and R&D, making semiconductors one of its major exports. But who imports the greatest portion of Taiwan’s chip exports? The an

Cross-strait Brain Drain in the Semiconductor Industry Ep11

Cross-strait Brain Drain in the Semiconductor Industry Ep11

Taiwan’s experienced semiconductor engineers are an asset to the continued success of Taiwan’s semiconductor industry. However, for years, Taiwan has lost a portion of its semicond

Are US Curbs on China Working? A Realistic Evaluation of Chinese Chip Industry Ep12

Are US Curbs on China Working? A Realistic Evaluation of Chinese Chip Industry Ep12

Since 2018, the United States has been intensifying its curbs on China, especially in the semiconductor industry and other sensitive technology areas. While these measures have eff

program cover image

Semiconductor Geopolitics

Learn about the Taiwan semiconductor industry's influential role, domestically and internationally, in this informative explainer series.