Why are we so dependent on Taiwan for microchips? Why couldn’t these be manufactured elsewhere, in addition to Taiwan?
In: 1601
Sure, they could. But the company that makes them, the Taiwan Semiconductor Manufacturing Company (TSMC), has some unique business benefits from the Taiwan government. Other locales have offered similar incentives, but the government of Taiwan sees TSMC as a strategic shield against a Chinese invasion of the island. They are strongly incentivized to have things go “very bad” should China invade them, given how many times Chinese leaders have proposed invasion in the past.
Latest Answers