【Epoch Times February 12, 2025】 TSMC’s wafer fab in the United States has recently started mass production. Researcher Michael Cunningham of the Heritage Foundation pointed out that the cooperation between the United States and Taiwan in the semiconductor industry is perfect. As long as it continues, the semiconductor industry in the US will always stay ahead of the Chinese Communist Party (CCP), and Taiwan is an indispensable partner for the US in “reindustrialization.”
Michael Cunningham, who worked in Taiwan for 3.5 years, returned to the US after finishing his work in China in 2021. He now serves as a researcher at the Asia Studies Center of the Heritage Foundation, focusing on China and foreign relations. In March of last year, he published a report titled “The American Case for Taiwan,” aiming to let the American people know how important Taiwan is.
The recent start of mass production at TSMC’s first wafer fab in Arizona is of epoch-making significance for semiconductor cooperation between Taiwan and the US.
In an interview with the Central News Agency on the 10th, Michael Cunningham pointed out that the cooperation between the US and Taiwan in the semiconductor industry is “perfect.” The US focuses on research and design, while Taiwan takes care of manufacturing. Building a wafer fab costs billions of dollars, and in this aspect, Taiwan is a reliable partner where US semiconductor companies can fully dedicate themselves to research and development.
Cunningham stated that the cooperation between the US and Taiwan in the semiconductor industry has two significant implications for the US. Firstly, the CCP can no longer obtain advanced chips from Taiwan. If the US and Taiwan continue to cooperate, the US will always stay ahead of the CCP as it would have to fully fund and support its semiconductor industry development.
He noted that the US needs industrial revitalization, promoting “reindustrialization,” and developing industries like automotive and artificial intelligence, leading to an increasing demand for semiconductors. With Taiwan having the largest and most sophisticated semiconductor cluster globally, it can produce high-quality yet affordable chips, which the US greatly needs.
Taiwan’s semiconductor strength is regarded as its “sacred mountain of national defense,” but some are concerned about the global over-reliance on TSMC. Any changes in the Taiwan Strait situation could pose severe risks to the global supply chain due to geopolitical risks.
Cunningham believes that the CCP is not currently capable or daring enough to attack Taiwan. As long as the US continues to support Taiwan, the CCP will not have the capability to do so in the future. Taiwan is a very secure place, with no political instability, internal conflicts, or terrorist attacks. Moreover, the semiconductor industry chain involves several countries, with some machines or components relying on specific countries – not just Taiwan. Any issues in one place could impact the entire industry chain.
Regarding how Taiwan and the US can enhance their semiconductor industry cooperation, Cunningham mentioned that both the Republicans and Democrats hope for Taiwan to assist in the US’s “reindustrialization.” While Americans may wish for more chip production domestically, the semiconductor cluster is in Taiwan. This requires bilateral government and corporate cooperation to find ways for Taiwanese companies to support the US semiconductor manufacturing industry.
When asked about the impact of the chip supply interruption during COVID-19 on the US, Cunningham gave an example of his experience when he returned to the US for work during that time. He wanted to buy a car but couldn’t find one due to a shortage of car chips. The wait for a new car was months long, and some very old used cars were being sold at prices higher than new cars.
Cunningham emphasized that Taiwan’s current role in the semiconductor supply chain is irreplaceable by the US or any other country, stating, “I believe there are many opportunities for cooperation (between the US and Taiwan).”
He also mentioned that the US’s “reindustrialization” requires not only semiconductors but also components like screws. It was only after working in think tanks that he discovered many of the world’s “hidden champions” in Taiwan. After researching, he found, “Wow, these are things I never thought of.” He believed that the vast majority of Americans or many Taiwanese are also unaware.
Cunningham stated that he would publish a report on “The American Case for Taiwan” to help Americans understand Taiwan’s role in geopolitics and the global economy.
He said, “I wrote this report to support Taiwan, of course. But the purpose of my writing is not for Taiwan but for the US – Taiwan is so important.”
In his report, Cunningham mentioned that Taiwan is the world’s leader in many areas of materials and components manufacturing. Due to the sudden shortage of these products, it could severely disrupt the supply chain, such as high-performance screws for use in cars and airplanes.
He noted that while people love to talk about war, the first island chain, geopolitics, or semiconductors, components like screws produced in southern Taiwan often go unnoticed. “These small parts, most people think are simple, but in reality, only a few companies worldwide make them.” He expressed his hope to have the opportunity to visit these factories in the future.
(Source: Central News Agency)