Taipei, Taiwan – Engineers in Taiwan’s semiconductor industry have faced challenges in recent years due to the United States’ efforts to limit China’s access to cutting-edge chips. This has put Taiwan’s chip sector in the middle of the global rivalry between the two superpowers. While the US actions serve as a countermeasure to potential Chinese aggression towards Taiwan, they have also complicated business for semiconductor companies in Taiwan that sell technology to China. Despite its small size, Taiwan produces a significant portion of the world’s semiconductor chips, including the most advanced ones used in various devices. Since the Chips and Science Act was signed by President Joe Biden in 2022, Taiwan’s semiconductor sector has had to adjust to new regulations, with many companies diversifying their production away from China. The changing policies have left some industry members feeling uncertain about their future business with China. The upcoming US presidential election on November 5 is expected to bring further changes that could impact Taiwan’s chip industry, regardless of whether Vice President Kamala Harris or former President Donald Trump is elected. Both candidates have expressed anti-China sentiments and are likely to continue imposing restrictions on Chinese tech, affecting Taiwan’s chip industry. The trade protectionism measures taken by the US government have led to uncertainties and challenges for Taiwanese companies involved in the semiconductor supply chain. The public in Taiwan has shown a preference for a Harris victory in the election, but there is still considerable ambivalence. The future trajectory of US-China relations under either Harris or Trump could have varying impacts on Taiwan’s chip industry. Despite the challenges, some Taiwanese companies have benefitted from the shifting regulatory environment and have adapted their business models to comply with US requirements. However, concerns remain about potential overcapacity in the market and the impact on the supply chain for chip-making equipment. The semiconductor industry in Taiwan continues to navigate through these uncertain times, preparing for potential changes that could affect their operations in the future.
