Wed, Jan 01, 2025 16:21
It looks like the U.S. will enter a new age of advanced semiconductor chip manufacturing now that the TSMC’s Arizona facility will start producing chips. The geopolitical implications for Taiwan, as highlighted by an analyst in this IEEE Spectrum article, could be substantial:
[TechInsights semiconductor analyst Dan Hutcheson] says having TSMC fabs outside Taiwan is good for the company’s customers and good for Taiwan. The island’s “ silicon shield” against China has done its work—TSMC’s dominance in advanced chip manufacturing gives the United States and other countries a reason to support Taiwan. But going forward, Hutcheson says the shield could turn into a target. If the United States and its allies are increasingly dependent on chips made only in Taiwan, then China can cause major damage to the U.S. economy by targeting Taiwan. Hutcheson says TSMC’s geographical diversification will make its home country less of a target. The company has also opened a fab in Japan and is building one in Germany.
I wonder if we can draw a parallel with the U.S. becoming a net exporter of petroleum, reducing reliance on Middle Eastern oil. Similarly, as the U.S. invests in domestic semiconductor manufacturing, what might this shift mean for geopolitics?
