During a significant visit to Taiwan for the inauguration of the island’s fifth elected president on May 20, 2024, former US Secretary of State Mike Pompeo highlighted the critical importance of Taiwan in the global semiconductor industry. Celebrating the inauguration, Pompeo participated in a book launch event where he gave remarks emphasizing Taiwan’s unique role in the world’s economy.
The former Secretary of State applauded Taiwan for its strong rule of law and pluralistic democracy and pinpointed the potential geopolitical risks. Pompeo pointed out that instability in Taiwan could have ripple effects, disrupting global markets, trade, and supply chains, with substantial impact on worldwide economic stability, including that of the United States.
Recognizing the island’s robust economy, Pompeo acknowledged the vital contributions of family-run small and medium-sized businesses reinforced by highly skilled professionals. Adding a touch of humor, he remarked on the surprising number of US-trained engineers and entrepreneurs working in Taipei.
On the topic of semiconductor leadership and the collaboration between the US and Taiwan, Pompeo took the time to elucidate the intentions behind the CHIPS Act, which was formulated during his tenure. The legislation’s design was not solely aimed at shifting semiconductor production to the US but also at enhancing the global supply chain through strategic cooperation with leading industry players like TSMC and Samsung.
He candidly advised Taiwan to maintain its competitive lead, particularly against China, through continuous innovation in the semiconductor field. To remain at the forefront, Taiwan must foster the new generation’s talents and double down on high-end research.
Known for his advocacy for the US to develop its own semiconductor production capabilities and reduce reliance on China, Pompeo highlighted the strategic partnership with Taiwan, exemplified by TSMC’s decision to invest in a US plant. This move was seen as a significant step in strengthening US-Taiwan relations amid China’s push to dominate advanced technology.
Having been instrumental in the passing of the CHIPS and Science Act in 2022, Pompeo urged for the bill’s approval, underlining the criticality of safeguarding access to essential technologies from potential Chinese control.
Pompeo’s engagements with Taiwan’s industry leaders across various sectors reflect the high-level economic conversations that are pivotal to both nations’ interests. He has engaged with key figures, including executives from semiconductor and steel companies to food manufacturers and hoteliers.
Asserting that Taiwan’s economic prowess serves as a defense mechanism, Pompeo, in his commentary, described Taiwan’s dominance in the semiconductor industry as a “silicon shield” against external threats. He expounded on the concept in a Wall Street Journal column, arguing that economic influence could serve as a deterrent to Chinese aggression more effectively than military might.
While Pompeo highlighted the potential strategy for US manufacturers to capitalize on market disruptions, he stopped short of detailing how the US could bolster Taiwan’s “silicon shield.” Nonetheless, his emphasis was clear: continued innovation and expansion of semiconductor capacity are crucial for Taiwan’s security and the global market’s stability.
