Taiwan has reaffirmed its commitment to maintaining the production of the world’s “most advanced” semiconductors on its home soil, despite growing military pressure from China. The island nation, which manufactures more than half of the world’s chips—including nearly all of the most advanced ones—plays a pivotal role in powering devices from smartphones to AI data centers.
Taiwan’s Silicon Shield
Taiwan’s dominance in semiconductor manufacturing has long been viewed as a “silicon shield,” protecting it from potential threats of invasion or blockade by China, which claims Taiwan as part of its territory. This strategic importance has also been an incentive for the United States to provide security support to Taiwan. However, escalating Chinese military activity in the region has sparked concerns about potential disruptions to global supply chains, prompting calls for greater chip production outside of Taiwan’s borders.
Francois Chih-chung Wu’s Statement
Francois Chih-chung Wu, Taiwan’s Deputy Foreign Minister, emphasized that the island would continue to lead in semiconductor technology. In an interview with AFP on December 10, 2025, Wu said, “We will try to maintain the most advanced technology in Taiwan, and to be sure that Taiwan continues to play an indispensable role in the semiconductor ecosystem.”
Wu acknowledged that Taiwan faces challenges in scaling production capacity due to limited land, water, and energy resources. However, he assured that Taiwan would expand its investments globally while still maintaining strong connections with its home production.
Global Expansion of Taiwan’s Chip Production
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has already invested heavily in manufacturing facilities (fabs) in the United States, Japan, and Germany. TSMC’s recent pledge to spend an additional US$100 billion on US chip plants further highlights Taiwan’s commitment to expanding its global footprint.
Despite these international investments, Wu noted that replicating Taiwan’s unique semiconductor culture and expertise in foreign locations poses significant challenges. “Taiwan has a very special culture to make the semiconductors very well,” Wu remarked.
Challenges of Moving Fabs Abroad
While some have suggested moving more semiconductor production abroad to mitigate risks, Wu believes the best approach is to focus on preventing conflict. He rejected a proposal from US Secretary of Commerce Howard Lutnick, which suggested a 50-50 split in chip production between Taiwan and other countries, asserting that such a move would undermine Taiwan’s central role in the industry.
Strategic Importance of Taiwan
Wu expressed confidence that both the United States and Europe would respond to any Chinese aggression against Taiwan due to their shared interests in the region. “Your interest and Taiwan’s interest we share together,” Wu said, emphasizing the importance of peace and freedom of navigation in the Taiwan Strait—a key international shipping route.
He also reiterated that Taiwan’s semiconductor industry is critical not only to the island but also to global markets. “We are the core interest of China, but we are also a core interest of the US,” he concluded.
Conclusion
Despite the growing military tensions with China, Taiwan remains resolute in its mission to keep the production of the world’s most advanced semiconductors on its own soil. With its strategic importance in the global supply chain and its unwavering commitment to technological leadership, Taiwan’s semiconductor industry continues to play a pivotal role in shaping the future of global tech.
