“Chips and Science Act”: What Risks Does the Federal Law Pose to Taiwan?

Abstract

1. 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.
 

2. The U.S. aims to reduce dependence on Taiwan’s semiconductor industry by establishing domestic production facilities, which could alter Taiwan’s strategic significance.
 

3. While military confrontation remains a possibility, Beijing is primarily relying on economic, diplomatic, and legal tactics to assert its influence over Taiwan.
 

4. NATO has outlined potential intervention scenarios in a Taiwan contingency, while the European Union remains divided on Taiwan’s sovereignty.
 

5. 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.