If necessary, Taiwan has the means to shut down all
semiconductor manufacturing equipment supplied by the European company ASML. This information was confirmed by Wu Cheng-wen, the island’s new administration’s Minister of Technology, in response to a question from a member of parliament. This statement comes amid heightened tensions with China.
The expression “Silicon Shield,” coined by American journalist Craig Addison in the early 2000s, takes on its full meaning. It summarizes the idea that Taiwan is so central to supplying the entire planet with semiconductors
that it is protected from an invasion by its large neighbor .
Taiwanese political figures, notably former president Tsai Ing-wen of the Democratic Progressive Party (DPP), known for its pro-independence stance, have adopted the phrase. It has become increasingly prominent in the public consciousness as China threatens the island with a blockade, or even worse, more than ever before.
Following the inauguration of Tsai Ing-wen’s successor, Lai Ching-te, also a member of the DPP, the People’s Liberation Army (the Chinese military) began military exercises. These maneuvers, codenamed “United Sword 2024A,” literally encircle Taiwan. They are openly presented as retaliatory measures against the new president, portrayed as a ” dangerous separatist .”
The United States, which is closely monitoring events, has expressed particular concern about the consequences of an invasion for the semiconductor industry. According to Bloomberg , contacts have been established with Taiwan and the Netherlands on this matter.
The European country is home to ASML , the company that holds a monopoly on extreme ultraviolet (EUV) lithography machines. These are the most advanced manufacturing tools available, enabling the production of high-tech chips. Since their introduction to the market in 2019, ASML has been banned from selling them in China . Conversely, the largest customer for these bus-sized devices is none other than the Taiwan Semiconductor Manufacturing Company (TSMC) .
TSMC is the world’s largest contract semiconductor manufacturer. The company supplies more than 90% of the advanced chips in circulation and 99% of AI accelerators, according to one of its senior executives. While the group has begun a strategy of diversifying its production locations in response to various laws supporting the establishment of chip factories , these facilities currently remain primarily located in Taiwan.
Minister Wu Cheng-wen confirmed the possibility of a circuit breaker for EUV machines, stating that ” according to current smart chip manufacturing technology, this is feasible .” The Netherlands reportedly met with ASML to discuss this scenario, and simulations were allegedly conducted.
The idea of the “Silicon Shield”, which is an addition to Taiwan’s overall defense strategy, is to make the cost of an invasion far too high for China and thus deter it from resorting to such an extreme measure.
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