Taiwan to keep production of 'most advanced' chips at home: deputy FM

TAIPEI, Taiwan: Taiwan plans to keep making the “most advanced” chips on home soil and remain “indispensable” to the global semiconductor industry, the deputy foreign minister told AFP, despite intense Chinese military pressure.

The island state makes more than half of the world’s chips, and nearly all of the most advanced ones, that power everything from smartphones to AI data centres.

Taiwan’s dominance of the industry has long been seen as a “silicon shield” protecting it from an invasion or blockade by China — which claims the island is part of its territory — and an incentive for the United States to defend it.

But the threat of a Chinese attack on Taiwan has fuelled concerns about potential disruptions to global supply chains and has increased pressure for more chip production beyond Taiwan’s shores.

“We will try to maintain the most advanced technology in Taiwan, and to be sure that Taiwan continues to play the indispensable role of the ecosystem of the semiconductor,” Deputy Foreign Minister Francois Chih-chung Wu told AFP in an interview Wednesday.

“I think it’s the same logic for every country, even countries not under such a very complicated geopolitical situation.”