(ELI5) What is it about Taiwan that makes it a good spot to produce computer chips?
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The same thing that makes Hollywood a good spot to produce movies – everybody else’s investments. Taiwan has supported huge investments by all the possible chip companies and their suppliers. This investment has made TSMC, their flagship chip maker, the low cost fab of choice, making a staggering 1/2 of all the chips made in the world.
Why did the government invest like this? I don’t know, I’m not in the Taiwanese government, but a huge business that could collapse the world economy if it were destroyed during a Chinese military invasion of their island is not a bad reason.
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