Global Semiconductor Partners Move to Diversify Supply Chains and Reduce China Dependence

Global semiconductor leaders and government officials from Taiwan, Germany, and the United States are coordinating to restructure supply chains to increase resilience and reduce reliance on China. Taiwan Semiconductor Manufacturing Co. (TSMC) is central to this effort, with ongoing investments in the United States, Japan, and a new factory in Dresden, Germany, which is expected to begin production by the end of next year. President Lai Ching-te of Taiwan stated that these international connections create a more diversified supply chain capable of withstanding geopolitical shifts, natural disasters, and pandemics.

In Germany, business leaders and officials are actively seeking closer ties with Japan and other democratic nations to safeguard advanced technology. Frank Rohmund of Carl Zeiss AG noted that the company is reducing its dependence on China due to substantial risks. Similarly, Thomas Horn of Saxony Trade & Invest Corp. indicated that the European Union is discussing the use of trusted chips for critical infrastructure in fields such as defense and artificial intelligence to exclude Chinese materials.

Furthering these ties, President Lai urged European countries to sign investment and double taxation agreements with Taiwan to unlock greater industrial cooperation. He highlighted that Taiwanese investment in the European Union has surged 650 percent over the last decade. Lutz Güllner of the European Economic and Trade Office in Taiwan added that the goal is to build a comprehensive ecosystem linking research, design, and manufacturing. U.S. Under Secretary of State for Economic Affairs Jacob Helberg described this network of trusted partners as the Pax Silica project, emphasizing that concentration of manufacturing without resilience is a vulnerability.