In a world increasingly reliant on technology, the semiconductor industry plays a key role in the global economy and security. This article explores the strategies and challenges faced by the United States and Taiwan, two leading players in semiconductor manufacturing, combining insights from the current global state of the semiconductor industry.
USA vs. Taiwan: Different Approaches to Boosting the Semiconductor Industry
The USA and Taiwan have developed different approaches to promote their semiconductor industries. While the USA utilizes the CHIPS Act and direct subsidies to strengthen domestic production, Taiwan relies on tax incentives and a centrally managed strategy to secure its position as a leading manufacturer of semiconductors.
In the 1970s, the Taiwanese government laid the foundation for a significant ecosystem of semiconductor manufacturing by initiating research projects and promoting the creation of companies like TSMC and UMC. These investments have made Taiwan a central player in the global semiconductor supply chain.
Taiwan follows a company-driven approach, largely leaving it up to the companies themselves to decide in which technologies to invest. In contrast, the USA and Europe attach strict conditions to their subsidies, aimed at addressing specific weaknesses in the supply chain.
The Role of Tax Incentive and Subsidies
The centerpiece of Taiwan's support for the semiconductor industry is tax incentives aimed at attracting investments in advanced production and research activities on the island. Conversely, US policy prefers direct subsidies to support specific areas of semiconductor production.
Taiwan is a leader in the manufacture of the most advanced logic chips and is home to two of the world's largest foundries. This position stems from long-term investments in research and development and a policy that encourages companies to invest in the latest technologies.
Challenges and Goals
Both countries face different challenges: Taiwan aims to maintain its leading role and defend against growing competition, especially from China. The United States, on the other hand, seeks to regain its former dominance in semiconductor manufacturing and reduce dependency on foreign semiconductors.
Summary
Both the United States and Taiwan recognize the strategic importance of the semiconductor industry to their economic strength and national security. While their strategies and priorities differ, in both cases, there is a strong commitment to supporting their semiconductor industries. Taiwan relies on a decentralized, company-driven strategy, while the USA prefers a centralized approach with specific goals for subsidy allocation. These different approaches reflect the unique challenges and goals of each nation and underscore the global significance of the semiconductor industry.
The semiconductor industry remains a dynamic field, characterized by innovation, investment, and international competition. How the USA and Taiwan evolve their strategies will be crucial in securing and strengthening their positions in the global semiconductor landscape.
Quellen: McKinsey, Deloitte, BNF, MDR, ChinaTalk, Precedence Research
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