As geopolitical tensions continue to reshape global supply chains, governments around the world are strengthening industrial policies in pursuit of strategic autonomy or strategic indispensability. In a recent interview with France’s Institut Montaigne, Dr. Jeremy Chih-Cheng Chang, CEO of the DSET, emphasized that Taiwan’s semiconductor and ICT manufacturing industries have never defined themselves using such concepts—yet they continue to play an indispensable role in the global value chain.
Dr. Chang traced Taiwan’s industrial advantage back to the 1970s, when local firms began building close, long-term relationships with global clients. He explained that Taiwan has developed into a hardware ecosystem defined by contract manufacturing, rooted in a business model that prioritizes client needs and operational flexibility.
“Our development strategy has never followed the logic of ‘America First’ or ‘European sovereignty’ industrial policies,” he said. “Instead, Taiwan’s approach has been built on a broad consensus between the government and supply chain firms: a clients-first model.”
Rather than aiming to be strategically indispensable in abstract geopolitical terms, Taiwanese companies focus on whether their services are indispensable to their customers. Dr. Chang noted that in today’s era of techno-geopolitics, where economic security has become a central justification for industrial policy, Taiwan must also develop its own strategic narrative—one grounded in its unique ecosystem and industrial role.
On Taiwan’s position in global AI supply chains, Dr. Chang highlighted the industry’s longstanding adaptability: from electronic watches to PCs to smartphones, Taiwan’s manufacturers have consistently aligned with leading technology trends and pivoted toward high-value markets.
“Just three years ago, Taiwan’s supply chain was centered around the Apple ecosystem,” he explained. “Today, it has rapidly shifted to meet the hardware needs of AI leaders like NVIDIA.”
This responsiveness to world-leading clients demonstrates the strength of Taiwan’s integrated contract manufacturing ecosystem and its ability to remain central to emerging technology supply chains.
Regarding Europe’s ambition to reindustrialize through initiatives like the EU Chips Act, Dr. Chang said Taiwan is eager to be a “silicon catalyst” in this process. He urged European policymakers to complement one-time subsidies with more sustainable incentives—such as long-term tax deductions—designed to attract contract manufacturers like those in Taiwan to make meaningful, long-term investments in the region.
Dr. Chang also addressed the critical role of talent mobility. He emphasized that the frequent “brain circulation” between Taiwan and the United States has fostered deep interdependence, while a similar exchange between Taiwan and Europe remains limited.
“Europe should proactively send young professionals to Taiwan for industrial training or education,” he said. “These individuals—fluent in both cultures and systems—will become key enablers of future Taiwanese investment in Europe.”
Such cross-cultural professionals could help translate Taiwan’s experience into locally adapted industrial practices, accelerating Europe’s path to meaningful technological reindustrialization.
As global supply chains undergo a strategic realignment, Dr. Chang stressed that Taiwan is not seeking dominance but offering flexibility, reliability, and value-added services. He concluded:
“Taiwan’s strategy should not be to copy the language of others. Instead, it should articulate its own vision—a strategic value rooted in high-quality manufacturing services.”
