Individual Paper
3. Prosperity, the Pains of Growth and its Governance
There is an interesting issue of economic interdependence between China and Taiwan in the AI chips sector. Today, the semiconductor industry's value chain clearly shows a distinction among a few key states. The U.S. serves as the global chips designer; machine producers are located in the U.S., the Netherlands, and Japan; Taiwan holds the dominant manufacturing position in the majority of chips, also the most advanced ones. Contract manufacturers are also based in Korea and China.
On one hand it is crucial to study China’s strategy to became a part of this division or to disturb it. On the other hand, one must consider the lessons that can be drawn from Taiwan’s strategy, especially in relation to the U.S.'s approach that leads to a chip war with China. Adopting a theoretical perspective of realism in this study suggests that powerful nations have a strong willingness to maximize their relative gains over rivals, explained by the logic of zero-sum game competition. Therefore we assume that Taiwan’s position in AI chips manufacturing places it as a crucial link in the technological competition between the U.S. and China. Taiwan's strategic position within global supply chains serves to maintain a balance of power between China and the U.S., with its semiconductor industry playing a crucial role in ensuring national security by limiting China's technological potential.
Ewa Trojnar
Jagiellonian University, Poland
Lukasz Gacek
Jagiellonian University, Poland