Jeremy Chih-Cheng Chang, CEO of the Research Institute for Democracy, Society, and Emerging Technology (DSET), was recently interviewed by Canadian French-language media outlet Le Devoir, where he discussed the technology security challenges facing Taiwan’s semiconductor industry, including China’s efforts to obtain critical technologies and the broader geopolitical competition over advanced technologies.
Le Devoir is an influential French-language publication in Canada known for its coverage of international affairs, security, and technology issues. The interview was part of a series of Taiwan-related reports by journalist Magdaline Boutros during her visit to Taiwan this year. In addition to Chang, the series also featured interviews with Taiwan’s Deputy Foreign Minister François Chihchung Wu, Deputy Minister of Economic Affairs Wen-Ruo Chiang, and Deputy Minister of the Mainland Affairs Council Yu-Chung Shen, covering topics including the semiconductor industry, digital democracy, and civil defense resilience.
In its semiconductor-focused report, Le Devoir highlighted that Taiwan currently manufactures more than 90 percent of the world’s leading-edge semiconductors, with these advanced chips primarily supplied to U.S. companies. As Taiwan and the United States continue to implement strict export controls on advanced chips and related technologies, China has faced increasing difficulty accessing high-end semiconductors and has sought to overcome supply chain constraints through domestic production efforts and attempts to obtain Taiwan’s commercial secrets and critical technologies.
The report noted that China has pursued multiple approaches to acquiring advanced technologies, including direct technology theft, talent recruitment, and the use of investment structures to bypass regulatory oversight. For example, in 2009, TSMC accused China’s Semiconductor Manufacturing International Corporation (SMIC) of obtaining its semiconductor process technologies by hiring former TSMC employees. More recently, in March this year, senior executives at U.S.-based Super Micro Computer were accused of illegally redirecting servers equipped with NVIDIA’s advanced AI chips to China.
Chang noted that Taiwan has continued to strengthen legal protections for critical technologies and trade secrets through amendments to the National Security Act. In 2022, Taiwan introduced new provisions addressing the overseas use of national core critical technologies and strengthened penalties for activities involving the theft of critical technologies and commercial secrets.
Beyond technology acquisition, China has also sought to attract Taiwanese semiconductor professionals by offering high salaries and benefits. Some Chinese entities have reportedly established shell companies in Taiwan, allowing related recruitment activities to take place without requiring engineers to leave Taiwan. Chang pointed out that since 2020, Taiwan authorities have initiated legal action against approximately 100 such shell companies.
The report further highlighted another strategy: using investment structures to obscure the influence of Chinese capital on Taiwan’s technology sector. Taiwan has long imposed strict restrictions on Chinese investment in critical industries, particularly semiconductors. However, some companies have attempted to circumvent regulations through opaque corporate structures. In 2022, Taiwanese prosecutors indicted Chinese company Luxshare Precision, alleging that it used a Hong Kong-based structure to conceal its Chinese connection and acquire shares in Taiwan-based electronics company SpeedTech Corp.
“When people say Taiwan’s semiconductor industry is irreplaceable, it should be clarified that it can be replaced — but only by China,” Chang said. He warned that if China gains an advantage in this intense technology competition, it could further shape the future of artificial intelligence development and weaken Taiwan’s strategic “silicon shield.”
Chang emphasized that Taiwan’s central role in the global semiconductor supply chain remains a significant strategic deterrent. However, as China continues to invest heavily in semiconductor and AI development, the global technology landscape is rapidly evolving. “China is catching up every day,” he said.
DSET’s Economic Security Program continues to examine how China seeks to overcome constraints imposed by U.S. export controls and advance its artificial intelligence (AI) computing capabilities through various strategies. In June, DSET released its latest research report, The Great Breakout: Advanced Packaging and China’s Race for AI Compute Parity, analyzing how advanced packaging is reshaping the global semiconductor value chain and how China is leveraging emerging technologies to accelerate AI development.
