Taiwan's Unique role with TSMC in U.S. A.I vs. China A.I. Wars

Chips Act, chip bans and drones in the coming A.I. wars.

Hey Everyone,

There’s a lot to unpack in Taiwan’s unique role in the A.I. wars that seems to be brewing between the U.S. and China. The A.I. cold war is quickly arriving. The Semiconductor supply chain strategy the U.S. is using against China is also provactive.

TSMC is the world’s leading producer of semiconductor chips and it doubling down on its plan to build planets in Arizona, U.S. The investment by TSMC is one of the largest foreign investments in U.S. history, and the largest in the state of Arizona.

The Biden Administrations Chips Act and ban on chips to China such as Nvidia’s A.I. chips is a direct result of increasing competition with China in artificial intelligence and the perils of the global semiconductor supply chain.

Semiconductor chips are used in everything from computers and smartphones to cars, microwaves and health-care devices. Once the plants open, they will produce enough chips to meet the U.S. annual demand. The announcement comes in wake of the passage of the CHIPS and Science Act which was signed into law in early August, 2022. The U.S. has lured TSMC, a Taiwanese company, to build more in the U.S.

In the event of a Chinese invasion of Taiwan across the Taiwan Strait (where I am currently located), and a disruption to TSMC, it could produce global economic shocks and a deep recession. The U.S. Chips Act invests $280 billion to bolster US semiconductor capacity, catalyze R&D, and create regional high-tech hubs and a bigger, more inclusive STEM workforce.