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Journal of World Trade
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Taiwan’s Economic Security in the Shadow of Chips Nationalism

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Taiwan’s Economic Security in the Shadow of Chips Nationalism


Journal of World Trade
Volume 59, Issue 2 (2025) pp. 283 – 302

httpss://doi.org/10.54648/trad2025019



Abstract

This article addresses Taiwan’s economic security in an era of chip nationalism and in light of various countries’ zeal to establish semiconductor national champions through variations on the CHIPs Act. The article defines economic security and traces how it is perceived in Taiwan through an investigation of the strategic thinking of successive administrations responding to changing international economic relations, China’s rise, and US-China strategic competition and technological rivalry. The article explores challenges facing Taiwan in view of chip nationalism in the post-pandemic era and assesses Taiwan’s role in global supply chain resilience and the impact of a potential second Trump presidency on Taiwan’s economic security, in general, and semiconductor industry in particular. Taiwan plays a key role in the American strategy to outpace China in the current technological competition as elevating America’s own semiconductor industry will be costly, contrary to economic logic, and impose costs injurious to American producers and consumers.


Keywords

CHIPS Act, nationalism, economic security, Taiwan


Extract




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