Taiwan’s Government Is Scared of Its Own Semiconductor Giant

Taiwan’s Government Is Scared of Its Own Semiconductor Giant

Taipei needs to learn how to better wield the “silicon shield.”

Visitors take selfies with the logo of the Taiwan Semiconductor Manufacturing Co Ltd (TSMC) outside of the TSMC Museum of Innovation on April 18 in Hsinchu, Taiwan. November 3, 2025, 6:00 AM Comment icon View Comments ( )

U.S. Commerce Secretary Howard Lutnick sent shock waves through Taipei when he declared in late September that Washington could not guarantee that it would defend Taiwan unless the island agreed to a 50-50 split of its semiconductor production with the United States. The concept of a “silicon shield”—the idea that global dependence on Taiwan’s chips enhances its security—has long shaped perceptions of Taiwan’s strategic value to the w