Silicon Shield

The “Silicon Shield” theory suggests that Taiwan’s role in the global semiconductor supply chain acts as a deterrent against China’s aggression. The other side of the coin is the deep interdependence of all parties within the supply chain. The idea is simple: If Taiwan’s chip production were disrupted, the global economy would face catastrophic consequences. Such a disruption would force international powers, particularly the United States, to intervene to protect this vital line.

But while the Silicon Shield might seem like a protective barrier, it’s also a double-edged sword. Chip manufacturing prowess may increase the danger to Taiwan because China may covet it, and the United States may press Taiwan even harder for diversification.

Source: https://thediplomat.com/2024/09/silicon-shield-2-0-a-taiwan-perspective/