Taiwan does not officially exist in much of the world. Its microchips make it hard to ignore

Microchip manufacturing plants, or fabs, inside futuristic warehouses lining the leafy streets of Taiwan’s Hsinchu Science Park are so secure and locked from the outside that visitors Is strictly controlled.

Inside, in dust-free laboratories are robotic machines that etch silicon wafers with nano-level precision, creating the world’s most advanced processors.

Artificial intelligence databases, iPhones, cars, and practically every other piece of digital technology in existence depend on them.

No other place on the planet comes even close to Taiwan’s technological breakthroughs in the manufacturing, or foundry, market.

Control is assumed by a single company, Taiwan Semiconductor Manufacturing Company, or TSMC. About 70 percent of the world’s chip market – and an astonishing 90 percent for the most advanced chips.

This is a remarkable achievement for an island with a population of 23 million people that does not officially exist in the eyes of most of the world.

Canada, like all but a dozen or so smaller states, recognizes the government of the People’s Republic of China in Beijing, but not Taiwan, which China views as a separate province.

However, recently, for many Taiwanese, the lack of recognition has felt a little less so.

“We don’t have to worry too much about people not caring about us,” said Amy Lin, a 21-year-old college student who was shopping in Taipei. Guanghua Digital Plaza, An electronics market known as Computer Street.

“We have wafers (microchips), so we have something to interact with others. It definitely boosts our confidence as a country.”

There is no more ‘silent nation’

Analysts who study Taiwan’s semiconductor industry and its impact on geopolitics agree.

“Taiwan has been a silent nation for decades,” said CEO Jeremy Chang. Research Institute for Democracy, Society and Emerging Technology (DSET), a think-tank that studies the relationship between geopolitics and Taiwan’s semiconductor industry.

His words reflect the title of a documentary on Taiwan called 2023 invisible nationThe film chronicles the island’s long struggle to emerge from martial law and become a thriving democracy in the shadow of communist China.

“This is a very transformative moment for Taiwan, that (we) finally got a chance to negotiate or talk with like-minded colleagues,” Chang said. “Almost all countries need a lot of new semiconductors. You can no longer ignore Taiwan.”

Chang described the world as “page one” of the artificial intelligence era, and the developments that lie ahead “will be completely different from what humans have ever experienced.”

What he means by this is that significant advances in robotics, drones and AI will all be supported by semiconductors.

In an interview with CBC News, Taiwan’s vice president, Hsiao Bi-khim, emphasized that none of the island’s manufacturing successes happened by chance.

“Taiwan has been really treated unfairly by most countries around the world, which do not recognize Taiwan’s status,” he said.

“It took us decades to build this, and it was also decades of hardship,” Hsiao said, emphasizing the strategic investment, planning and training programs created by governments over 40 years.

“Under very difficult international conditions, Taiwan managed to create one of the most comprehensive and competitive ecosystems that supports high-level manufacturing in semiconductor chips,” she said.

validating semiconductor precursors

This success is a remarkable recognition of those who pioneered Taiwan’s semiconductor industry more than 30 years ago.

“I think no one believed in this park (Hsinchu) because at that time, not many people knew how to proceed,” said tech entrepreneur Min Wu, who was interviewed at the offices of Macronics International Co., Ltd., the firm he founded.

In 1989, Wu returned to Taiwan after earning a degree from Stanford University and working for several years in California’s Silicon Valley.

At the time, Japanese companies had a lock on the bulk of the semiconductor business, but by designing and building a fully computerized fab, Wu said, he was able to increase efficiency and chip quality.

Macronics would become the world leader in making flash memory chips, which are used extensively in automobiles and video game consoles, such as Nintendo’s.

Wu said, “Slowly we saw the results of that work. After ten years, we found that our quality was much better than everyone else’s.”

For Taiwan’s policymakers, the relevant issue now is how to leverage the island’s indispensable role in global supply chains to achieve their political goals.

In late September, during a diplomatic dispute with South Africa, Taiwan briefly raised the possibility of blocking microprocessors as punishment To reduce the island’s representation in the country.

But that kind of direct threat may prove to be a one-off. Officials in Taipei quickly appeared to back down and instead agreed to more talks.

Analysts say making microchips is probably not a particularly useful tool for coercion, because Taiwan does not design or sell the chips it makes. For example, TSMC makes semiconductors for other companies.

Nor does Taiwan have the ability to project its financial system internationally and impose export controls on goods like the United States or China.

China recently imposed Export controls on many rare earth minerals To put pressure on America, which had earlier taken the step to restrict the sale of semiconductors to Chinese companies.

regular provocations by china

Ronan Fu, a defense and political researcher from TaipeiAcademia Sinica said it believes Taiwan should rely on diplomacy rather than intimidation Win more friends.

“The key issue is whether the United States will come to Taiwan’s defense if it is attacked,” Fu said.

Taiwan faces almost daily military provocations from China’s military, with Chinese ships and aircraft testing Taiwan’s defenses. For example, on Tuesday, Taiwan army informed Chinese fighter planes carried out 16 sorties that penetrated the island’s air defense identification zone, along with intrusions by ships.

China is also on an unprecedented production spree of ballistic missiles and other long-range weapons, putting the main island of Taiwan within easy reach.

Fu said Taiwan needs to continue its efforts to build a stronger military alliance with the US and other East Asian countries, and joining the global supply chain – even if with some distance from China – strengthens that case.

“Taiwan’s role is really to serve as an important component of the alliance that the US has built. The US has made it clear that we are trying to rebuild a supply chain free from China’s influence.”

TSMC has taken important steps to strengthen its presence outside Taiwan by building state-of-the-art foundries in Germany, Japan and Arizona.

But as it grows more business, oChang Sa, CEO of FFshore, DSETID Taiwan will remain a global chip hub as the industry is deeply interconnected.

“Currently, they have to ship the chips produced in the Arizona fab back to Taiwan Packaging,” he said, refng to the final stage of the production process which can greatly increase their efficiency.

Taiwan’s Vice President Hsiao said her government’s focus remains on strengthening the partnership.

“Taiwan has always tried to leverage our influence in a positive way,” he said. “We will continue to work with friends and partners around the world who share our values ​​and our goals.”