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Taiwan’s Semiconductor Industry and Its ‘Silicon Shield’ Against China : Planet Money : NPR

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Taiwan’s Semiconductor Industry and Its ‘Silicon Shield’ Against China : Planet Money : NPR

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Hsinchu, Taiwan - September 16: Close-up of circuit boards displayed by Macronix Electronics Co., Ltd. on September 16, 2022 in Hsinchu, Taiwan. Taiwan's semiconductor manufacturing capabilities are critical to the global supply chain. According to media reports, Taiwan accounts for about 60% of global semiconductor foundry revenue. (Photo credit: Annabelle Chih/Getty Images)

Annabelle Chi/Getty Images

Hsinchu, Taiwan - September 16: Close-up of circuit boards displayed by Macronix Electronics Co., Ltd. on September 16, 2022 in Hsinchu, Taiwan. Taiwan's semiconductor manufacturing capabilities are critical to the global supply chain. According to media reports, Taiwan accounts for about 60% of global semiconductor foundry revenue. (Photo credit: Annabelle Chih/Getty Images)

Annabelle Chi/Getty Images

The Chinese Communist Party claims that Taiwan is part of China and always has been. At the same time, many on the island say that Taiwan is independent of China and a self-governing democracy. One thing may be protecting Taiwan in this global dispute: semiconductors.

Semiconductors, or microchips, are found in almost everything—cars, laptops, cell phones, ATMs, satellites, and even nuclear weapons. Taiwan is a global leader in semiconductor production; people even call its semiconductor industry the “Silicon Shield.” In theory, if the world relied on Taiwan’s semiconductors, then perhaps the world would stop China from invading Taiwan. Besides, China also needs Taiwan’s semiconductors, so perhaps it won’t risk disrupting the industry.

The story of building the Silicon Shield is only part of a story of economic development so dramatic that it’s simply known as the “Taiwan Miracle.” On today’s show, we team up with NPR’s Peabody Award-winning podcast Throughline to tell this epic history. From revolution to the Cold War to a visionary finance minister. Plus, we meet a lovestruck Taiwanese engineer who managed to get into your favorite Nintendo product by pulling off one of the craziest global trade schemes we’ve ever heard of.

Today’s show is reported by Planet Money. Through LineNPR’s show about the past that is never past. Listen to Throughline’s story “Silicon Island.”

Music by Ramtin Arablouei: “Open”, “Arrival”, “KT Li”, “The Face of an Ironist”, “The Park”, “Back to Taiwan”, “The Nintendo Heist”, “All the Stops” and “Montreal”.

Subscribe to Planet Money+ to help support Planet Money and get bonus episodes In Apple Podcasts or plus.npr.org/planetmoney.

These links are always free: Apple Podcasts, Spotify, Google Podcasts, NPR One Or anywhere you listen to podcasts

Find more Planet Money: twitter / Facebook / Instagram / Tik Tok Our Weekly communication.



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