Semiconductors and the technology they fuel are the key to competitiveness, even survival, in the new economy. These chips power everything from our cars to our refrigerators to ChatGPT. The world as we know it could not function without the Taiwan Semiconductor Manufacturing Company (TSMC).
"Some 60% of the world's computer chips are made in Taiwan, which also accounts for over 90% of all advanced processing capacity."
As the world is waking up to its vulnerability to an event in Taiwan, the race toward self-sufficiency — or at least to establish a working backup plan — is on. However, self-sufficiency in semiconductor production is an impractical goal for every country. Accordingly, the question is not if countries will cooperate on tech, but how.
Political Innovation Needed in Tech Space
Technological self-sufficiency is not, and cannot be, about reshoring. This is not so simple as de-globalization. It is about a rethinking and fortifying of a complex and highly technical process. Is innovation the answer here? Yes, but not in the sense that tech firms must somehow outpace the already mind-boggling Moore's law. The real innovation necessary in the tech space, more likely, is political—in international cooperation and trade relationships.
90%
Taiwan accounts for the vast majority of all advanced processing capacity
For our full analysis of how access to technology, energy, and the global financial system will drive re-globalization and shape investment strategies, download the Megatrends report.