Taiwan’s dominance of the semiconductor manufacturing market has made it a vital geopolitical interest for the US.
Maria Ryan, University of Nottingham
Transformational, super-fast 5G internet is enabling a world of connected devices of every kind and a new generation of networked weapons. With this in mind, US officials began to realise during the Trump administration that US semiconductor design companies, such as Intel, were heavily dependent on Asian-based supply chains for the manufacturing of their products.
The US Congress has just passed the Chips and Science Act, which provides US$52 billion in subsidies to support semiconductor manufacturing in the US. But companies will only receive Chips Act funding if they agree not to manufacture advanced semiconductors for Chinese companies. In 2020, the Trump administration imposed crushing sanctions on the Chinese tech giant Huawei that were designed to cut the company off from TSMC, on which it was reliant for the production of high-end semiconductors needed for its 5G infrastructure business.
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