Taiwan's Semiconductor Dominance a Double-Edged Sword, Needs 'Second Defense Line': Foreign Media

Taiwan's indispensable position in the global semiconductor supply chain, controlling about 92% of advanced chip manufacturing, makes it a strategically vital asset but also a potential target, according to foreign media analysis.

Spanish financial outlet elEconomista highlighted that continuous "gray zone" tactics by China, such as incursions into Taiwan's air defense identification zone and naval activities, aim to desensitize the international community to the risks in the Taiwan Strait. Beijing is closely observing international responses to conflicts, including the US-Iran tensions, to gauge potential actions.

The article argues that Taiwan's heavy reliance on its semiconductor industry for strategic value is a vulnerability. It draws parallels to 19th-century economies dependent on coal, suggesting that a disruption to Taiwan's chip production could have far-reaching global economic consequences beyond the tech sector.

To counter this, the analysis proposes Taiwan develop a "second line of defense" by cultivating strengths in defense software, artificial intelligence, and cybersecurity. Unlike chip manufacturing, which can be replicated globally, a trusted software ecosystem and experienced talent pool are harder to duplicate. This strategic diversification could create a new, less replaceable form of strategic value for Taiwan within the democratic world.

Furthermore, the report advocates for Taiwan to proactively build a "Committee for the Defense of Freedom" with other Asian democracies. This platform would foster cooperation on defense technology and coordinated responses to economic coercion, drawing inspiration from historical alliances like the Hanseatic League to create a resilient network against modern threats.