Taiwan’s semiconductor “silicon shield” under pressure

Taiwan produces around 60% of the world’s semiconductors and nearly all of its most advanced chips, a dominance often described as a “silicon shield” against external threats.

But that shield is now facing pressure.

US tariff threats targeting high-tech industries, alongside concerns over Chinese attempts to acquire sensitive know-how, are raising questions about the long-term security of Taiwan’s most valuable sector.

At the same time, the island’s chip boom has deepened domestic inequality. While areas around the Hsinchu Science Park thrive, property prices have surged and wealth gaps have widened sharply, leaving many unable to keep pace with rising living costs.

As Taiwan doubles down on AI and high-performance computing, experts warn the economy is becoming even more dependent on a single industry—raising new vulnerabilities in a rapidly shifting geopolitical landscape.

So is Taiwan’s semiconductor dominance still a shield—or has it become a source of new risk?

Al Jazeera's Rob McBride reports from Taipei

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