“Chips and Science Act”: What Risks Does the Federal Law Pose to Taiwan?
Publication Date:
2025
Pages:
6
Item Reference:
IB-2025-11
Publication Place:
Bruges
Publication Language:
EN
Copyright Holder:
UNU Institute on Comparative Regional Integration Studies
Copyright Year:
2025
Policy Brief Type:
Abstract:
- Taiwan plays a crucial role in global politics, particularly in the ongoing power struggle between China and the United States, with its semiconductor dominance acting as a shield against Chinese aggression.
- The U.S. aims to reduce dependence on Taiwan’s semiconductor industry by establishing domestic production facilities, which could alter Taiwan’s strategic significance.
- While military confrontation remains a possibility, Beijing is primarily relying on economic, diplomatic, and legal tactics to assert its influence over Taiwan.
- NATO has outlined potential intervention scenarios in a Taiwan contingency, while the European Union remains divided on Taiwan’s sovereignty.
- While Biden strongly backed the CHIPS Act, Trump’s preference for tariffs over subsidies introduces uncertainty about continued U.S. support for Taiwan and semiconductor manufacturing investments.
