Resilinc Special Report

Navigating China-Taiwan Semiconductor Tensions and Supply Chain Risks

China-Taiwan semiconductor tensions are rapidly evolving, presenting significant risks and opportunities for semiconductor supply chains. In this report, we examine Taiwan’s critical role as the global leader in semiconductor manufacturing and China’s strategic efforts to expand its influence in the industry.
The report delves into potential disruptions to Taiwan’s chip production in the event of a Chinese annexation and evaluates strategic considerations for reshoring and nearshoring to ensure supply chain resiliency. Through actionable insights, we aim to help stakeholders navigate China-Taiwan semiconductor tensions, mitigate risks, and strengthen the global semiconductor supply chain while maintaining competitiveness in an increasingly volatile landscape.
Key Insights:
  • Taiwan boasts a fully developed semiconductor ecosystem, hosting the world's largest foundry, accounting for 63.8% of the global market, as well as the leading packaging and testing sectors, which comprise 58.6% of the global market
  • China is heavily reliant on exports to support its semiconductor industry
  • Countries look to re-shore and nearshore production to expand capabilities