Dr. Jeremy Chih-Cheng Chang, CEO of DSET, led a delegation to Washington, D.C. on 31 March, for a meeting with the Center for Strategic and International Studies (CSIS). During the visit, Dr. Chang met with Gregory Allen, Director of the Wadhwani Center for AI and Advanced Technologies at CSIS, along with his research team. Their discussions focused on China’s semiconductor strategy, supply chain risks associated with mature node chips, the proliferation of AI technologies, and export control policies.
The meeting built upon ongoing collaboration between DSET and CSIS in the fields of economic security and technology strategy, with a particular focus on DSET’s upcoming report on mature node semiconductors. Dr. Chang highlighted that the report unveils China’s systematic efforts to develop a mature node semiconductor supply chain, leveraging local government subsidies and policy support to designate specific companies as “national champions,” thereby squeezing non-state-backed firms out of the mid-to-low-end chip market.
CSIS’s Wadhwani AI Center recently published the report Understanding U.S. Allies’ Current Legal Authority to Implement AI and Semiconductor Export Controls, which examines and compares the semiconductor and AI export control frameworks of the U.S. and its allies. Dr. Chang contributed to the Taiwan chapter of this report.
The discussions during this visit were informed by such research. Gregory Allen noted that while U.S. semiconductor control measures have largely focused on high-end AI chips and advanced manufacturing processes, there has been insufficient attention to mature node semiconductors, allowing China to rapidly expand its capabilities in this underregulated segment. He emphasized that if China successfully dominates the mature node semiconductor supply chain, it could pose long-term strategic risks to the economic and national security of democratic nations.
The DSET team also shared findings from their research over the past year, including a 2024 report that exposed how Huawei, despite U.S. sanctions, has built a shadow network to access foreign resources, technologies, and services to expand its semiconductor production capabilities. Additionally, both sides discussed potential pathways for decoupling the drone supply chain from China. Dr. Chang pointed out that while Taiwan holds key technologies in the drone sector, it still faces challenges in production capacity, capital investment, and supply chain integration. DSET is actively advocating for cooperation with the U.S. and European allies to establish a “non-red supply chain,” fostering an independent and de-Chinaized defense technology ecosystem.
The meeting concluded with discussions on strategies to curb China’s influence over the mature node semiconductor supply chain. Both parties reinforced their commitment to deepening research cooperation on economic security issues, further strengthening the resilience of democratic nations in global technological competition.