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.