Mind Matters Natural and Artificial Intelligence News and Analysis

TagTaiwan microchips industry

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An advanced CPU printed with a flag of USA on a neon glowing electronic circuit board. Illustration of the concept of United States made high-end micro chips.

What Difference Has the CHIPS Act Made to the U.S. and Taiwan?

We need to first look at the broader picture of what the CHIPS Act is intended to do

In a previous article, I discussed the semiconductor industry and Taiwan’s supremacy in manufacturing microchips, the foundry portion of the semiconductor supply chain. Now let’s look at the U.S. perspective on the semiconductor industry and its relationship to Taiwan. In order to do that, we have to talk about the CHIPS+ Act Congress passed a bipartisan bill, the CHIPS and Science Act in July, after a year of negotiations in committee. President Biden signed the act into law on August 9 and the CHIPS Act Implementation Strategy was launched on September 6 through an executive order. CHIPS, or “Creating Helpful Incentives to Produce Semiconductors,” is a $250B initiative that incentivizes businesses to bring semiconductor manufacturing, research and innovation back to…

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China Taiwan and USA flag print screen to microchip on electronic board for symbol of military conflict war and economic business partnership concept.

Taiwan Has Bet Its Uncertain Future on Advanced Microchips

An increasingly belligerent China has long claimed to own Taiwan, which manufactures 90% of the world’s *advanced* microchips

Taiwan is the world’s largest manufacturer of microchips*, and not just by a small margin. Taiwan manufactures 65% of the microchips used in everything from smartphones to missiles. This compares to the U.S. at 10% and China at 5%. South Korea and Japan produce the rest. More important, Taiwan manufactures 90% of the world’s advanced microchips. In other words, without Taiwan, the world’s supply of microchips would come to a standstill, something that has been keenly felt since 2021 when chip shortages affected the auto industry. So far, the world’s dependence on Taiwan’s chips has protected the self-governing island nation from a potential invasion or ruinous trade sanctions from China. Earlier, we looked at U.S. House Speaker Nancy Pelosi’s visit…