How Do Security Threats Affect the Globalization of Production Chains?

• In Event: How Do Americans View Taiwan?

Abstract

Taiwan Semiconductor Manufacturing Company (TSMC) is a key semiconductor producer in Taiwan and the global supply chain. The company is also known as Silicon Shield for Taiwan because of the pivotal role of political economy, national security, and geopolitical relations and the potential severe consequences if disruptions occur. Given the escalating tensions in the Taiwan Strait, the stability of the global semiconductor supply chain has become a topic of widespread discussion. In 2020, TSMC made the strategic decision to expand its operations and establish factories in Arizona based on a foreign policy agreement. This project will explore three main aspects following TSMC's expansion in the U.S.: (1) TSMC's Decision-Making Process under Great Power Competition. (2)Global Impact, Political Economics, and Regional Security Relations. (3)Public Opinions in Taiwan, the U.S., and China over the past five years and how it affects states' decision-making. The study aims to conclude whether TSMC's expansion is a win-win decision, contributing to strengthening regional security in the Taiwan Strait and ensuring the stability of global supply chains.

Author

• WanTing Lee, Arizona State University