The US CHIPS and Science Act (2022) provides $52 billion in subsidies to reshore semiconductor manufacturing, reducing Taiwan's share of global advanced chip production from its historical dominance. Simultaneously, expanded US export controls on advanced chips to China use the foreign direct product rule to restrict even non-US firms from supplying Chinese buyers. Taiwan's leadership and TSMC founder Morris Chang have publicly warned this undermines Taiwan's "silicon shield"—the theory that global dependence on Taiwan's fabs deters Chinese military action—while Taiwan nonetheless accedes to US diplomatic pressure to build lower-capability fabs abroad. This divergence between US and Taiwanese policy objectives creates friction in a critical strategic alliance at a moment of heightened cross-strait tensions.
313 other tracked developments touching the same claims.