Semiconductors have now surpassed oil as the most important resource in the modern society. In the semiconductor industry, the US-China divide progressed through three turning points. And, in the industry, a phenomenon that Miller named “Taiwanization” occurs. It involves two aspects:（1）dependence on Taiwanese companies, especially TSMC, as the bearer of production,（2）dependence on Taiwan as the location of production. With the “Taiwanization,” the semiconductor industry has taken the unprecedented form in which “suppliers from latecomer countries controls the casting boat.” Then, TSMC does not subordinate to a lead firm in a developed country, but instead became a core supplier as envisioned by GPN 2.0, taking a different position from former suppliers from latecomer countries. Currently, more than 90% of the production of the advanced semiconductors are concentrated in Taiwan, thus TSMC is moving to disperse its production bases. However, both in terms of production volume and quality, it is likely that the concentration on Taiwan will continue. The term “Taiwanization” is attracting a lot of attention also in Taiwan, but some view the current situation as a crisis as “de-Taiwanization,” expressing strong concerns that advanced semiconductors will be produced outside Taiwan. This is based on the concept of “silicon shield,” being feared that if Taiwan’s share of semiconductor production declines, national security will weaken. In Taiwan, the proportion of secondary industry in GDP is increasing, while the proportion of tertiary industry is decreasing, going against the Petty-Clark law. The concentration of semiconductor production to Taiwan has significantly boosted the value of the electronic component exports, and it also led to a rise in income of electronic parts manufacturing industry.
