Taiwan Urged to Expand Its Role in Global Semiconductor Value Chain

Taiwan must enhance its competitiveness in the global semiconductor industry by engaging with the entire value chain, rather than focusing solely on chip manufacturing. This assertion was made by economic historian Chris Miller, author of the influential book Chip War: The Fight for the World’s Most Critical Technology, during a recent event in San Jose, California.

Speaking at the Robert N. Noyce Award ceremony hosted by the Semiconductor Industry Association, Miller emphasized Taiwan’s significant role in chip production, which has underpinned advancements in artificial intelligence (AI). He noted, “But there’s so much more value that we created across the value chain by artificial intelligence.” Miller identified the need for Taiwan to compete in various stages of the value chain, including software and application layers, beyond its already robust chip manufacturing capabilities.

Miller highlighted AI’s transformative impact on the semiconductor sector, suggesting that software will increasingly become a crucial component of the industry. He stated, “AI will accelerate those changes,” and stressed the importance for nations to focus on the AI technology stack as a whole.

During the ceremony, leaders from Taiwan Semiconductor Manufacturing Co. (TSMC), including Chairman C.C. Wei and former Chairman Mark Liu, were honored with the Robert N. Noyce Award, the highest accolade in the semiconductor field. Miller remarked on TSMC’s central role in the global semiconductor ecosystem, which has fostered collaboration between Taiwan and the United States. He expressed confidence that such partnerships would endure, stating, “I think the US ecosystem is always going to exist in collaboration with the Japanese and the European and the [South] Korean and the Taiwanese chip ecosystem.”

Despite the accolades, the global semiconductor industry faces a mixed sentiment due to escalating geopolitical tensions and a sharp increase in AI investments, leading to heightened demand for chips. Miller pointed out that the restructuring of global supply chains is presenting challenges not just for Taiwan but for the entire sector.

He noted, “The reality is, if you got a technology everyone else requires, then geopolitics is just gonna be less impactful, because everyone needs your technology.” Miller lauded TSMC for its crucial role, producing approximately 90 percent of the world’s high-end chips, asserting that the global market relies heavily on its output.

As Taiwan navigates these complexities, the emphasis on broadening its engagement across the semiconductor value chain appears increasingly vital. The convergence of AI advancements with semiconductor production signals a pivotal moment for the industry, and Taiwan’s proactive approach could define its future standing in this competitive landscape.