How to defend an industry that everyone covets
FROM the 1970s until a few years ago Taiwan’s semiconductor sector looked worthy but dull. Its chip-fabrication plants kept the global electronics industry ticking, but it was the gadgets the chips went into that made headlines. No longer. The world’s geopolitical heavyweights now regard microprocessors as powering not just all manner of machines but their economies as well. America is splurging $50bn in subsidies to bring chipmaking back home.
As long as R&D is done at home, the chipmakers’ most advanced fabs will probably remain there, too. Taiwanese firms in other bits of the supply chain are making similar calculations. ASE Holdings is the world’s largest chip packager. Putting processors in a casing used to be an unglamorous business.
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