Expert says Taiwan’s TSMC will keep chip edge

專家稱台灣台積電將持續保持晶片優勢。

TAIPEI (Taiwan News) — Taiwan is expected to retain its dominance in advanced semiconductor manufacturing despite TSMC’s expansion in the US, Council on Foreign Relations scholar David Sacks said Monday.

Sacks, an expert on China and Taiwan, said Taipei’s share of cutting-edge semiconductor manufacturing is unlikely to decline even if TSMC’s Arizona project succeeds, per CNA. He added that US-Taiwan relations extend far beyond the chip industry.

Sacks made the remarks at a seminar in New York on Taiwan’s role in the high-tech supply chain. The event, co-hosted by Network 20/20 and Taiwan’s representative office, focused on AI competition and semiconductor cooperation.

He said global demand for chips continues to rise, meaning overseas expansion will not significantly shift production away from Taiwan. The most advanced chips are still expected to be manufactured on the island.

Sacks also noted that US support for Taiwan predates the semiconductor industry. He cited the Taiwan Relations Act as evidence that bilateral ties are rooted in broader strategic interests.

Information Technology and Innovation Foundation Vice President for Global Innovation Policy Stephen Ezell said Taiwan remains central to the global semiconductor ecosystem. He noted that US clients account for about 70% of Taiwanese foundry revenue, underscoring a close partnership.

Council on Foreign Relations Director of Digital and Cyberspace Policy Adam Segal said Taiwan dominates key segments of the AI supply chain, including producing about 90% of the world’s AI servers. He added that Taiwan also leads in advanced chip packaging and testing.

Temple University Professor of Political Science Roselyn Hsueh said the US and Taiwan should deepen cooperation amid geopolitical tensions. She said stronger collaboration would help both sides maximize the benefits of their interdependence.