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Taiwan’s Global Role in Semiconductor Supply Chains: Experts Discuss Challenges and Opportunities at Supply Chain Resilience Forum

The International Forum on Supply Chain Resilience brought together international experts to discuss Taiwan’s critical role in the global semiconductor supply chain amid rising geopolitical tensions. The forum, organized by the National Science and Technology Council’s Research Institute for Democracy, Society, and Emerging Technology (DSET) and the National ChengChi University’s Supply Chain Resilience Center, explored Taiwan’s position in global trade, its strategic partnerships, and the impact of global restructuring on its semiconductor industry. Experts from Taiwan, the United States, Japan, South Korea, and Europe shared their perspectives on securing resilient supply chains and countering emerging geopolitical risks.

In the first session of the seminar, the speaker focused on the opportunities and challenges faced by the supply chains of countries worldwide in the context of geopolitical competition. The experts in attendance shared their insights.

Joe Wang from the Special Competitive Studies Project (SCSP) focused on the inseparable link between national security, economic security, and supply chain resilience. He emphasized, “We’ve learned from recent years that supply chain resilience is not just about economics—it’s about national security too.” Wang highlighted Taiwan’s leading-edge chip capabilities, noting that the country’s ecosystem is unique and cannot be easily replicated. “Taiwan’s ability to innovate and build trust with partners is what makes it central to global supply chains” Wang says.

Adam Horálek of Charles University highlighted the importance of mutual trust between Taiwan and its allies. “Taiwan’s historical expertise in semiconductors and its reputation as a reliable partner make it a key player in the global supply chain,” Horálek said. He also raised concerns about labor shortages and stressed the importance of strategic investments to avoid over-dependence on a single country.

Katsuto Suzuki from Japan’s Institute of Geoeconomics underscored the importance of combining technological capabilities and geopolitical strategies. “Japan and Taiwan’s cooperation in the semiconductor sector demonstrates the strength of mutual trust between our two nations,” Suzuki remarked. He stressed the need for continuous investments in advanced technologies to stay competitive and maintain stability in the face of geopolitical risks.

Won-Ho Yeon from the Korean National Diplomatic Academy (KNDA) focused on the economic challenges of reshoring and diversifying supply chains. He noted, “The costs of building redundancy are significant, but they are necessary to deal with unexpected risks in today’s uncertain geopolitical environment.” Yeon suggested that Taiwan and South Korea should view each other as complementary partners in building resilient ICT and semiconductor networks.

Panelist Prof.Dung- Sheng Chen later voiced out his concern that Taiwan’s importance in global trade could be undermined due to efforts by allied nations to diversify their supply chains.

Joe Wang responded by acknowledging Taiwan’s concerns, but reassured that Taiwan’s expertise in leading-edge chips would remain vital. “Taiwan’s decades of refining processes, innovation, and talent have created an ecosystem that cannot be easily replicated elsewhere,” Wang explained. He encouraged Taiwan to explore new partnerships while focusing on its comparative advantage in chip production. He emphasized that Taiwan must address competition in legacy chips from China with a collective strategy involving its allies.

Adam Horálek pointed out that Taiwan’s reputation and unique capabilities in the semiconductor market make its position difficult to undermine. He encouraged Taiwan to maintain and deepen trust with its partners, stating, “Strengthening relationships with trustworthy allies like Taiwan is crucial for global supply chain resilience.”

Katsuto Suzuki echoed these sentiments, highlighting Japan’s experience in cooperating with Taiwan as a testament to the strong trust between the two countries. “As long as Taiwan maintains its technological edge and trusted partnerships, its centrality in the global supply chain will remain secure,” Suzuki remarked.

Won-Ho Yeon emphasized the importance of balancing national security with economic competitiveness. He urged Taiwan to secure its strategic industries while sharing the costs of restructuring supply chains with like-minded countries. “Regional cooperation is key to navigating the complexities of geopolitical shifts,” Yeon concluded.

Jeremy Chang, CEO of DSET, reinforced the concept of “Second Shield 2.0” to address Taiwan’s strategic role in democracies. He argued, “Taiwan’s semiconductor ecosystem is indispensable for democracies’ resilience, serving as a collective shield against emerging threats.” Chan advocated for Taiwan’s inclusion in international rule-making processes to recognize its indispensable role in securing global supply chains.

The forum concluded with several key takeaways. The panelists emphasized that Taiwan’s technological capabilities, established partnerships, and strategic investments are critical to maintaining its role as a global leader in semiconductors. They highlighted the importance of trust-based partnerships between Taiwan and its allies to counter challenges posed by China. Experts encouraged Taiwan to continue investing in advanced research, maintaining its comparative advantage, and proactively engaging with international partners to build resilient supply chains.

In response to Dr. Chen’s concerns, the experts agreed that Taiwan’s significance in the semiconductor industry remains robust but requires continuous investment in talent, technology, and partnerships. They recommended that Taiwan strengthen its diplomatic and economic ties with like-minded nations and align its strategies to ensure a secure and prosperous future amid global restructuring efforts.

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