Taiwan's Tech Titans: TSMC and Foxconn

Abstract

Taiwan’s strategic positioning is at a crucial juncture, as reflected by the contrasting strategies of two of its key successful companies: TSMC and Foxconn. TSMC is strengthening ties with the US through a US$100 billion investment in semiconductor manufacturing in the US and allied countries. Foxconn is staying put in China but is moving away from reliance on chips and electronic devices. Taiwan’s strength lies in its semiconductor industry, which is vital for global supply chains. There are risks to Taiwan’s “Silicon Shield” strategy.