The Prague Post - Taiwan: Is the "Silicon Shield" collapsing?

EUR -
AED 4.311517
AFN 80.459001
ALL 97.861046
AMD 449.221187
ANG 2.100718
AOA 1076.404609
ARS 1470.290435
AUD 1.791892
AWG 2.112899
AZN 2.000281
BAM 1.955013
BBD 2.36186
BDT 142.592634
BGN 1.956686
BHD 0.442465
BIF 3485.327509
BMD 1.173833
BND 1.49851
BOB 8.082783
BRL 6.553268
BSD 1.170034
BTN 100.194118
BWP 15.628646
BYN 3.828176
BYR 23007.121999
BZD 2.349665
CAD 1.604917
CDF 3387.681116
CHF 0.932257
CLF 0.029042
CLP 1114.483409
CNY 8.428413
CNH 8.427867
COP 4721.155341
CRC 589.9727
CUC 1.173833
CUP 31.106568
CVE 110.221126
CZK 24.648254
DJF 208.307083
DKK 7.461233
DOP 70.142976
DZD 152.223833
EGP 58.176561
ERN 17.607491
ETB 162.306368
FJD 2.634901
FKP 0.864841
GBP 0.86252
GEL 3.181417
GGP 0.864841
GHS 12.209078
GIP 0.864841
GMD 83.926443
GNF 10151.089069
GTQ 8.990421
GYD 244.622628
HKD 9.214546
HNL 30.588215
HRK 7.530838
HTG 153.529541
HUF 399.309142
IDR 19041.328036
ILS 3.884618
IMP 0.864841
INR 100.434424
IQD 1532.376982
IRR 49447.704165
ISK 143.407551
JEP 0.864841
JMD 186.993974
JOD 0.83225
JPY 171.616637
KES 151.365347
KGS 102.651416
KHR 4697.150304
KMF 494.183253
KPW 1056.423672
KRW 1612.059556
KWD 0.35849
KYD 0.974804
KZT 606.623365
LAK 25203.752916
LBP 104810.480117
LKR 351.667023
LRD 234.536643
LSL 20.882514
LTL 3.466023
LVL 0.71004
LYD 6.326482
MAD 10.564498
MDL 19.827108
MGA 5177.894824
MKD 61.530165
MMK 2464.470539
MNT 4212.368283
MOP 9.458295
MRU 46.636324
MUR 53.080621
MVR 18.074825
MWK 2028.375324
MXN 21.8418
MYR 4.989986
MZN 75.078902
NAD 20.850323
NGN 1793.616166
NIO 43.04305
NOK 11.834586
NPR 160.312236
NZD 1.953052
OMR 0.451335
PAB 1.169734
PEN 4.152629
PGK 4.907109
PHP 66.216227
PKR 333.957537
PLN 4.242845
PYG 9066.391117
QAR 4.265302
RON 5.073068
RSD 117.164962
RUB 91.794533
RWF 1683.276171
SAR 4.402767
SBD 9.786155
SCR 17.225646
SDG 704.881407
SEK 11.152469
SGD 1.50142
SHP 0.922448
SLE 26.414414
SLL 24614.690259
SOS 668.528197
SRD 43.725855
STD 24295.968071
SVC 10.234839
SYP 15262.325911
SZL 20.849523
THB 38.253444
TJS 11.317395
TMT 4.120153
TND 3.421238
TOP 2.749233
TRY 46.999799
TTD 7.942771
TWD 34.302327
TZS 3084.286863
UAH 48.893221
UGX 4199.328454
USD 1.173833
UYU 47.321164
UZS 14870.01764
VES 133.35479
VND 30639.969489
VUV 140.042854
WST 3.231986
XAF 655.690416
XAG 0.032209
XAU 0.000353
XCD 3.172342
XDR 0.815468
XOF 655.696
XPF 119.331742
YER 283.891327
ZAR 20.844629
ZMK 10565.899751
ZMW 28.454674
ZWL 377.973668
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%


Taiwan: Is the "Silicon Shield" collapsing?




Taiwan, long regarded as a linchpin in the global technology supply chain, faces an uncertain future as its vaunted “silicon shield”—the notion that its dominance in semiconductor production deters aggression—comes under strain. The island’s strategic importance, driven by the Taiwan Semiconductor Manufacturing Company (TSMC), which produces over 90% of the world’s most advanced microchips, has historically offered a degree of protection against threats, notably from China. However, recent policies from United States President Donald Trump are raising fears that this shield may be crumbling, leaving Taiwan vulnerable at a time of escalating geopolitical tension.

The Silicon Shield: A Fragile Bastion
The concept of the silicon shield posits that Taiwan’s indispensable role in supplying cutting-edge semiconductors to the world—powering everything from smartphones to artificial intelligence—acts as a deterrent against military action, particularly from Beijing, which claims the island as part of its territory. The theory rests on the catastrophic economic fallout that would follow any disruption to TSMC’s operations, a scenario that would cripple global supply chains and affect major economies, including the U.S. and China itself. For years, this economic leverage has been Taiwan’s unspoken safeguard, complementing its military defences and U.S. support under the Taiwan Relations Act.

Yet, this shield is not impervious. China’s growing military assertiveness—demonstrated by large-scale drills encircling Taiwan in October 2024—and its advancements in domestic chip production have already cast doubt on the shield’s durability. Now, Trump’s aggressive economic strategy is adding a new layer of jeopardy, threatening to erode Taiwan’s technological edge and, with it, the island’s strategic security.

Trump’s Tariff Threat:
Since reclaiming the presidency, Trump has doubled down on his “America First” agenda, targeting Taiwan’s semiconductor industry with a bold and controversial plan. In a speech to Republicans on 27 January 2025, he proposed tariffs of up to 100% on imported microchips, arguing that Taiwan had “stolen” America’s chip industry and that such measures would force production back to U.S. soil. “They won’t want to pay a 25%, 50%, or even 100% tax,” Trump declared, framing the policy as a means to revitalise American manufacturing.

This stance marks a sharp departure from his first term, during which he bolstered Taiwan through arms sales and diplomatic engagement, including a historic call with then-President Tsai Ing-wen in 2016. Now, his rhetoric portrays Taiwan less as an ally and more as an economic rival. His administration has also questioned the $6.6 billion in grants awarded to TSMC under the 2022 CHIPS and Science Act for a factory in Arizona, with Trump dismissing it as a “ridiculous programme.” Such moves signal a transactional approach, echoing his earlier demands that Taiwan “pay” for U.S. defence support.

Economic and Strategic Fallout:
The implications of Trump’s plan are profound. For Taiwan, tariffs would not only raise costs for U.S. importers—likely passed on to consumers—but also jeopardise TSMC’s investments in American facilities, which now total $65 billion. Taiwanese Premier Cho Jung-tai has vowed to maintain the island’s tech leadership, announcing on 28 January 2025 that the government would explore “cooperative plans and assistance programmes” to shield its industry. Economy Minister Kuo Jyh-huei, meanwhile, downplayed the immediate impact, citing Taiwan’s technological superiority, though analysts warn that prolonged pressure could force TSMC to shift more production overseas, diluting Taiwan’s economic leverage.

Strategically, this shift could weaken the silicon shield’s second layer: the reliance of third parties, particularly the U.S., on Taiwanese chips. If Trump succeeds in relocating significant semiconductor production, Taiwan’s role as a global chokepoint diminishes, potentially reducing the incentive for Washington to defend the island. This fear is compounded by Trump’s ambiguous stance on Taiwan’s defence, having dodged questions in 2024 about whether he would intervene if China attacked, instead noting the island’s distance—9,500 miles from the U.S. versus 68 miles from China.

China’s Opportunistic Gaze:
Beijing, which has never renounced the use of force to achieve unification, may see an opening. While China relies heavily on TSMC—despite progress with firms like SMIC—some analysts argue that Taiwan’s chip prowess is less a shield and more a prize, incentivising control over the industry. Trump’s policies could accelerate this calculus. Posts on X suggest a growing sentiment that his approach might “incentivise Taiwan to capitulate” by undermining its economic defences, though such views remain speculative.

Taiwanese officials remain defiant. The foreign ministry, responding to Trump’s tariff threats, reiterated on 28 January 2025 that the Republic of China is a “sovereign and independent country,” dismissing any distortion of its status. President Lai Ching-te, who has stressed the “solid as a rock” U.S.-Taiwan partnership, faces the challenge of bolstering defences—currently budgeted at 2.45% of GDP—while navigating this economic onslaught.

A Shield at Risk:
Taiwan’s silicon shield has never been a guarantee, but Trump’s plan introduces unprecedented pressure. By targeting the island’s economic lifeline, he risks not only disrupting global tech supply chains but also weakening a key deterrent against Chinese aggression. For Taipei, the task is clear yet daunting: reinforce its technological edge, deepen international ties, and prepare for a world where its shield may no longer hold. As the U.S. pivots inward, Taiwan stands at a crossroads, its fate hanging in the balance between economic might and geopolitical reality.



Featured


Marhabaan, welcome to the UAE and Dubai!

Marhabaan, welcome to the UAE and Dubai! The "skyward striving" Dubai next to ancient desert cities. Mysterious Bedouins and magnificent mosques exist peacefully alongside futuristic cities. Discover wadis and oases, golden sandy deserts, paradisiacal beaches and Arabian hospitality. The modern and the ancient Orient united in a book for dreaming.On this journey to Dubai and Abu Dhabi in the United Arab Emirates, the fairy tales of 1001 Arabian Nights meet the modern Arab world. These cascading cities enchant with their sky-high skyscrapers, fragrant souks, huge shopping centres and the ancient cultural heritage of the sheikhs.You can choose to stay in 4- or 5-star hotels with breakfast and swimming pools. You also have more options to book excursions so you can feel the magic of the East even more. If you want to do something out of the ordinary, you can spend an extra night in an enchanting hotel in the middle of the emirate's desert. Experience your own fairytale from 1001 nights and look forward to a holiday with plenty of casual extravagance in two superlative desert cities!

Trade and business at the Dubai Gold Souk

If Naif Deira is associated with a specific context, organization, or field, providing more details could help me offer more relevant information. Keep in mind that privacy considerations and ethical guidelines limit the amount of information available about private individuals, especially those who are not public figures. The Dubai Gold Souk is one of the most famous gold markets in the world and is located in the heart of Dubai's commercial business district in Deira. It's a traditional market where you can find a wide variety of gold, silver, and precious stone jewelry. The Gold Souk is known for its extensive selection of jewelry, including rings, bracelets, necklaces, and earrings, often crafted with intricate designs.Variety: The Gold Souk offers a vast array of jewelry designs, with a focus on gold. You can find items ranging from traditional to modern styles.Competitive Pricing: The market is known for its competitive pricing, and bargaining is a common practice. Prices are typically based on the weight of the gold and the craftsmanship involved.Gold and More: While gold is the primary focus, the souk also offers other precious metals such as silver and platinum, as well as a selection of gemstones.Cultural Experience: Visiting the Gold Souk provides not only a shopping experience but also a glimpse into the traditional trading culture of Dubai. The vibrant market is a popular destination for both tourists and locals.Security: The market is generally safe, and there are numerous shops with security measures in place. However, as with any crowded area, it's advisable to take standard precautions regarding personal belongings.Gold Souk is just one part of the larger Deira Souk complex, which also includes the Spice Souk and the Textile Souk. It's a must-visit for those interested in jewelry, and it reflects the rich cultural and trading history of Dubai.

Dubai: Amazing City Center, Night Walking Tour

During this excursion, we leisurely explore Dubai Downtown and Burj Khalifa in the evening, giving you the chance to witness the captivating transformation of the district as it comes alive with the vibrant glow of thousands of lights. As the sun sets, the illuminated facade of Burj Khalifa and the enchanting Dubai Fountain collaborate to produce a genuinely magical atmosphere.Dubai Downtown, also known as Downtown Dubai, is a distinguished and iconic district situated in the heart of Dubai, United Arab Emirates. It is a renowned neighborhood celebrated for its striking architecture, luxurious living, and exceptional entertainment options. At the core of Downtown Dubai stands the Burj Khalifa, a towering skyscraper that holds the title of the world's tallest man-made structure and serves as an emblem of modern Dubai.Burj Khalifa: The focal point of Downtown Dubai, Burj Khalifa, is famous for its groundbreaking height, reaching an impressive 828 meters (2,722 feet). Designed by architect Adrian Smith, its distinctive Y-shaped design encompasses a mix of residential, commercial, and hotel spaces.Dubai Mall: Adjacent to Burj Khalifa is the Dubai Mall, one of the largest shopping malls globally, featuring an extensive array of retail outlets, from high-end boutiques to international brands. The mall also provides various dining options, and entertainment attractions like an indoor ice rink and an aquarium, and hosts the mesmerizing Dubai Fountain.Dubai Fountain: Located just outside the Dubai Mall, the Dubai Fountain is a captivating attraction that presents a nightly spectacle of water, music, and light, captivating visitors with its perfectly synchronized performances.Emaar Boulevard: Stretching through Downtown Dubai, this boulevard is adorned with restaurants, cafes, and shops, making it a popular spot for leisurely strolls, dining, and people-watching.Luxury Living: Downtown Dubai boasts numerous upscale residential buildings and hotels, making it an appealing locale for those seeking a sophisticated urban lifestyle.Cultural Attractions: The Dubai Opera, an iconic cultural venue within the district, hosts a diverse range of performances, including opera, ballet, concerts, and theater productions.Transportation: Downtown Dubai is well-connected through public transportation, including the Dubai Metro, facilitating easy access to other parts of the city.In summary, Downtown Dubai is a dynamic and vibrant district that stands as a testament to Dubai's modernity and grandeur. It seamlessly combines architectural wonders with shopping, entertainment, and cultural offerings, creating a truly extraordinary destination.