Min-yen Chiang, Deputy Director of the Economic Security Program at DSET, has published an article in the Special Paper Taiwan in the Hidden War: The Contest for Technological Sovereignty Against Infiltration, released by the Institute for Security and Development Policy (ISDP) in Stockholm, Sweden.
Titled “Technology Controls and Supply Chain Challenges: Taiwan’s Global Role in Countering China’s Semiconductor Ambitions,” the article examines how Taiwan can safeguard technological sovereignty and economic security amid intensifying global technological competition and the ongoing restructuring of supply chains.
The article notes that key technologies such as semiconductors and artificial intelligence have increasingly become central arenas of great-power competition, placing Taiwan at the forefront of the technological contest. China has actively pursued the upgrading of its semiconductor industry through industrial policy, forward-looking investment, and technological cooperation, while also seeking to obtain critical capabilities through supply chain partnerships and talent recruitment. As a result, the technology sector has evolved beyond an economic pillar to become a central domain of national security and geopolitical competition.
Drawing on DSET’s research, Chiang highlights that Chinese firms have in recent years adopted multiple approaches to expand technological engagement with Taiwan’s semiconductor industry. These include recruiting Taiwanese high-tech talent through overseas entities or intermediary arrangements, as well as building cross-border industrial collaboration networks aimed at narrowing technological gaps in advanced AI chip design. Such developments increase the risks of technology leakage and supply chain vulnerabilities, underscoring the policy challenges Taiwan faces in balancing economic security and industrial development.
At the global supply chain level, the article further notes that China’s continued expansion of mature-node semiconductor production may increase global reliance on Chinese supply chains in the coming years. In response, Taiwan will need to maintain its technological leadership while strengthening cooperation with like-minded partners and promoting more transparent and resilient “non-red supply chains” in order to reduce dependence on high-risk sources.
The article also emphasizes that coordination between export controls and industrial policy will remain an important instrument of technology governance. By deepening policy dialogue and institutional cooperation with the United States and other democratic partners, Taiwan can play a more proactive role in the global semiconductor and technology supply chains while enhancing its ability to address technological infiltration and economic security risks.
Chiang concludes that as technological competition and geopolitical pressures increasingly intersect, striking a balance between promoting innovation and safeguarding national security will remain a key challenge for Taiwan’s technology policy. Strengthening supply chain resilience, improving economic security frameworks, and deepening international cooperation will be essential for Taiwan to sustain its strategic position in the global technology landscape.
The Special Paper also features contributions from several scholars and policy experts. Among them is “Cross-Strait Academic Exchanges: Balancing Collaboration and National Security,” written by Dr. Yu-Chung Shen, Deputy Minister of the Mainland Affairs Council of the Republic of China (Taiwan). Dr. Shen’s article examines Taiwan’s strategic challenges from the perspective of cross-strait relations and academic exchanges, highlighting the need to balance international collaboration with national security considerations.
