SEMICONDUCTOR DOMINANCE AND WESTERN DEPENDENCE: GEOPOLITICAL RISKS FROM TAIWAN AND CHINA

Abstract

This paper explores the geopolitical and economic risks posed to Western countries due to their dependence on semiconductors produced by Taiwan and China. It highlights the superiority of Taiwanese semiconductor manufacturing, led by TSMC, which significantly outpaces Western production in terms of technology and innovation. The research examines how a potential Chinese invasion of Taiwan could exacerbate the West’s vulnerability by consolidating China’s control over the global semiconductor supply chain. Additionally, the study discusses Western efforts, such as the CHIPS Act and EU Chips Act, aimed at reducing dependence on foreign semiconductors, while also analyzing the limitations of these initiatives. Through a detailed investigation of the semiconductor landscape, this paper underscores the critical role of innovation, supply chain security, and geopolitical stability in maintaining the West’s economic and technological dominance in the face of rising Chinese influence.