Cathy Fang, Policy Analyst with the Economic Security and National Security Programs at the Research Institute for Democracy, Society and Emerging Technology (DSET), recently published an op-ed in The Diplomat titled “From Foundry to Forum: Taiwan’s Repositioning in the New Semiconductor Order.” The article analyzes the emerging industry trends revealed at SEMICON Taiwan 2025, arguing that Taiwan is evolving from the world’s leading manufacturing hub into a proactive platform for international innovation and cross-border collaboration.
Fang notes that this year’s SEMICON, themed “Lead with Collaboration, Innovating with the World,” highlights Taiwan’s new role amid intensifying geopolitical and economic competition. In a sector defined by both efficiency and vulnerability, the semiconductor supply chain is controlled by a handful of key players—namely the United States, Japan, the Netherlands, South Korea, and Taiwan. With geopolitical rivalries escalating, many economies are attempting to establish “mini Hsinchu Science Parks” to create self-sufficient semiconductor ecosystems. Yet, no single country can dominate the entire value chain; the real strategic goal is to secure a minimum viable autonomy that ensures access to critical components under stress conditions.
According to Fang, the core lesson of SEMICON 2025 lies in the paradoxical coexistence of competition and collaboration. While the globalized structure of the semiconductor industry remains resilient, new modes of cooperation and competition are emerging to address concerns over security, localization, and innovation. This dynamic forces governments to weigh difficult trade-offs between efficiency, excess capacity, intellectual property protection, and innovation momentum.
The op-ed further observes that as Moore’s Law reaches both physical and economic limits, the industry’s focus is shifting away from advanced process nodes toward packaging and new materials. Breakthroughs such as 3DIC, silicon photonics, compound semiconductors, and co-design across hardware and software represent the next frontier for performance gains. Leveraging its strengths in precision manufacturing and materials science, Taiwan is leading this technological transition and reshaping its strategic position within a system where cooperation and competition coexist.
Fang concludes that progress in the semiconductor industry will not come from isolationism or a blind pursuit of complete localization, but from striking a balance between openness and resilience, collaboration and competition. She calls on both governments and enterprises to sustain investment in R&D and maintain irreplaceability at the technological frontier—essential conditions for resilience and competitiveness in an era of global uncertainty.
