Why the U.S. and China are So Interested in Taiwan

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*Important to note: TSMC has factories in China and the U.S. However, its most advanced factories are in Taiwan, for security reasons.*

Continue watching our series on the chip war:

Newsthink is produced and presented by Cindy Pom

Thank you to our Patrons, including Igli Laci, Ronil Patel, Tom Eng

Special thanks to the following for permission to use their material:

The use of corporate press images is for news reporting and educational purposes.

Sources:
1:12 Image sourced from Alamy (Newsthink Ltd. is a registered client)
1:17 Image of Mark Liu sourced from TSMC press center (image allowed for news reporting purposes)

Articles referenced:
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Important Note: TSMC has factories in China and the U.S. However, its most advanced factories are in Taiwan, for security reasons.

Newsthink
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JosePiusV
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Most Taiwanese people are Hard working, friendly and humble

fanlin
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LenaSchweizer-ffxy
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SMIC is still years away from TSMC. Being able to make 7nm chips and mass producing them is two completely different challenges.

jasonchang
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This is why here in Taiwan, TSMC is often nicknamed "National protection mountain" (護國神山) because it gives Taiwan enormous value on global economy so other countries are inclined to preserve our independence.

SVASH-hzji
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Taiwan plays a very low key in the world. After it is found that 90% of advanced chips are from Taiwan, Taiwan is put under the spotlight. Taiwan is a technology island. Taiwanese have the same working style as Japanese. Both of countries are strongly tied.

ching-changmeng
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I’ve worked in Taiwan for 7 years, my company is located near in TSMC factory bldg, during my break time, I walked around in the vicinity of that area (Tainan Science Park)

introvertedminimalist
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I support Taiwan's TSMC because Taiwan is a normal, friendly, trustworthy country.

jamescps
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The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400, 000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.

MichaelAD
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The US has been interested in Taiwan since WW2. It was referred to as “an unsinkable aircraft carrier” and its strategic importance is why the US told Japan they had to give up control of Taiwan when they surrendered at the end of the war. This is of course an insane oversimplification and only references one aspect. The point I am making, though, is that the US interest in Taiwan is not new and it’s not because of TSMC (even if TSMC has added to the reasoning in recent years).

SkylerKing
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Most importantly, TSMC is honest, loyal, reasonable, and helpful, not evil. That kind of company benefits all industry.

WaterFallingDown
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Tiwain should be the first globally protected country. Protected by all countries.

Kattakam
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半導體很難在美國製造 唯一問題是台積電的工時很長 而且有些部門是三班制 電話隨叫隨到的 這在亞洲只要付錢就可以解決 但美國有工會 所以企業無法複製亞洲工廠

mstwltw
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timdangercabeen
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In the 1980s, the dispute between the United States and Japan was about memory semiconductors, not logic semiconductors produced by TSMC. Memory semiconductors are mass-produced semiconductors with relatively simple technology. Logic semiconductors are custom-made semiconductors commissioned by professional factories according to customer designs and are much more challenging to manufacture than memory semiconductors. As a result, American companies designate TSMC for production not because they're cheap but because TSMC's semiconductors aren't inexpensive and tend to be the most expensive. In addition, U.S. companies entrust TSMC because the U.S. cannot manufacture advanced semiconductors.

genuinennessbefitting
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Before 2004, the United States led the world in semiconductor technology, and foundries had to pay IBM's technology license fees. But in 2004, TSMC took the lead in developing 0.13-micron copper process technology ahead of IBM, ushering in the era of Taiwan's semiconductor technology leading the world. In 2014, IBM withdrew from the foundry business, and TSMC considered buying IBM's fab in New York State. However, even though IBM's technology has lagged Taiwan by a decade, the US Department of Defense and IBM, still worried about the influx of already lagging American technology into Taiwan, rejected the deal. High-tech semiconductor technology is the result of Taiwan's efforts to develop, and now the United States claims to "bring back" semiconductor production to the United States.

genuinennessbefitting
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MALAYSIA - A lot off Msia people has experienced working with semiconductor companies but it's is difficult industry & big capital to dominant. Congratulations TSMC from Malaysia 🇲🇾

asrie
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Very good reporting. The mainstream media tells us about some of these events, but not the WHY. You explained the WHY. Subscribed.

nimayork