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Taiwan election 2024
ChinaPolitics

Taiwan semiconductors: president-elect William Lai vows to ‘continue to assist’ sector

  • ‘China and other countries must also cherish’ Taiwan’s role in global chip industry, Lai says after victory on Saturday
  • Frayed cross-strait ties and US-China tensions have sparked concerns about the core sector seen as a ‘silicon shield’ for the island

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William Lai addresses a rally outside the DPP headquarters in Taipei following his victory in Saturday’s presidential election. Photo: Elson Li
Frank Chenin Shanghai
Delivering his acceptance speech on Saturday, Taiwan’s president-elect William Lai Ching-te vowed to spare no efforts to further develop the island’s critical chip and semiconductor industry.
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“As president, I will continue to assist the development of the semiconductor industry, from materials, equipment, research and development, integrated circuit design, manufacturing to wafer fabrication and testing for the industry to build a comprehensive cluster and further its development in Taiwan. This will of course benefit the global economy as well,” Lai said in Taipei.

Taiwan produces about 60 per cent of the world’s semiconductor chips, and most of the bleeding-edge circuits that power the latest smartphones and supercomputers. Along with its strong original equipment manufacturer (OEM) edge in producing wafers – the building blocks of chips – and key role in the industrial supply chain, this creates what is touted as a “silicon shield” for the self-governed island.

However, concerns about the safety of the global semiconductor supply chain with Taiwan as a key node have mounted in recent years, in line with frayed relations across the Taiwan Strait and tensions between Beijing and Washington – a key supporter of Taiwan.

Taipei is also under pressure from Washington to move key production to the United States, though incumbent President Tsai Ing-wen and her Democratic Progressive Party (DPP) have long assured support for top chip makers like Taiwan Semiconductor Manufacturing Company (TSMC) to keep most of the research and development and production onshore.

Calling the Taiwanese industry “the world’s common asset”, Lai said Taiwan had a responsibility to ensure that the global community could also benefit from its advantage in chip-making.

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