Dr. Jeremy Chih-Cheng Chang, CEO of DSET, was recently interviewed in Japanese by PIVOT, a prominent economic media outlet in Japan. The in-depth conversation focused on Taiwan’s semiconductor strategy and its pivotal role amid intensifying U.S.-China tech competition and geopolitical tensions.
PIVOT is known for its in-depth coverage of global economic trends and industrial strategies. The one-hour interview was recorded at PIVOT’s studio in Shibuya, hosted by Chisa Kotesashi. Dr. Chang provided detailed insights into the current state, challenges, and future direction of Taiwan’s semiconductor industry.
The first half of the interview, now available on PIVOT’s official YouTube channel, centers on Taiwan’s semiconductor development and strategic positioning. The second half, which discusses drone technology and subsea cable infrastructure, is accessible via PIVOT’s exclusive business video app (PIVOT-ビジネス映像メディア-TV).
Taiwan’s Core Vision for Semiconductor Strategy
In the interview, Dr. Chang emphasized that Taiwan is positioning its semiconductor industry as a national strategic cornerstone, particularly in this era of “economic security.” He noted that beyond early government industrial policies, Taiwan’s success lies in its continued alignment with cutting-edge global technology trends. Whether during the iPhone-driven ICT manufacturing era or the current AI boom led by companies like NVIDIA, Taiwanese firms have swiftly adapted to meet global chip demands.
He added that Taiwan’s semiconductor strategy focuses not only on next-generation technologies such as AI and electric vehicles but also on legal and institutional safeguards. The 2022 amendments to Taiwan’s National Security Act formally established a protection framework for “national core technologies,” while changes to the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area strengthened measures against technology leakage and talent poaching by the PRC.
As a long-term competitor, China has pursued tactics such as intellectual property theft, forced technology transfers, and mass production through market scale. However, it remains unable to fully domesticate advanced semiconductor manufacturing. Dr. Chang explained that U.S. export controls—alongside Dutch firm ASML’s EUV lithography monopoly and Japan’s dominance in photoresists and semiconductor equipment—present significant chokepoints for China.
“Our Economic Security Research at DSET is committed to deepening semiconductor industry research and supporting Taiwan’s economic security posture in international negotiations—countering unfair PRC subsidies and promoting national economic interests,” Dr. Chang stated.
Strategic Thinking on Global Supply Chain Reconfiguration
Discussing the global push by the U.S., Japan, and Europe to localize semiconductor production, Dr. Chang characterized this trend as a natural result of supply chain realignments. Post-pandemic chip shortages and the AI surge have prompted these economies to prioritize semiconductor self-sufficiency under strategies like “friend-shoring.”
He noted that Taiwan embraces an open and cooperative approach, with industry leaders such as TSMC investing in the U.S., Japan, and Germany. These efforts not only diversify risk but also strengthen international partnerships. The TSMC Arizona investment, for example, was driven by U.S. security concerns about domestic access to advanced chips.
Dr. Chang concluded by warning that Taiwan has no fallback option in the event of a Taiwan Strait crisis. He stressed the importance of developing national defense capabilities through “non-red supply chains,” including drone technology, to ensure self-reliance in critical moments. DSET’s National Security Research is actively researching dual-use technology supply chains and collaborating with allies to mitigate threats posed by China’s military-industrial linkages.
“Taiwan’s semiconductor strategy is far more than economic policy—it is a vital pillar of geopolitical stability and the future of global innovation,” Dr. Chang affirmed.
