Taiwan's president-elect faces growing challenges with Taiwan's chip industry

Laï Ching-te, WHO won that of Taiwan presidential election last SATURDAY, will be focused towards A crossroads In THE country technology industry When he takes desk In May.

Lai administration will be THE third term of Democratic Progressive To party ruler In Taiwan, And he East widely expected has continue THE work of her predecessor, Tsai Ing-wen, When he come has proof A of THE country the biggest economic Drivers And most precious exports: It is semiconductor industry. But Laï has speak several times about that of Taiwan fleas without laid out specific Strategies, And he can find himself having has adapt as THE industry becomes more and more vulnerable has geopolitics.

Laï has Also promised has create 20,000 to start up jobs In five years, but has given little detail on how he plans has reach that. Laï do keen comments about that of Taiwan chip industry After her victory on SATURDAY that seem has TO DO he clear that her administration main technology to focus will be on semiconductors. That makes sense, given their huge importance has Taiwan And THE of the world chip provide chain. For example, TSMC alone accounts For 60% of THE of the world foundry ability. that of Taiwan semiconductor industry strengthens THE global standing of THE country, A little island with A population of 23 million. And notably, THE well-being of that of Taiwan economy East closely intertwined with It is semiconductor industry performance.

In her acceptance speech Laï said he would be "continue has to assist THE development of THE semiconductor industry," add that This would be Also advantage THE global economy.

Lai mention of that of Taiwan fleas was enough has cause A booster In chip actions. He notably Underlines TSMC importance has THE world, which Albright stone bridge Band partner partner And technology policy lead Paul Triolo applauded.

"THE big thing was that he was A to focus of her speech, And I have has been argue This For A long time, which East that Taiwan And TSMC are global assets," said Triolo.

There is priority that Laï East willing has enact Strategies favorable has THE semiconductor industry instead of just Speaking In platitudes. While portion as mayor of Tainan In THE south of Taiwan, Laï help establish A TSMC factory In A science park.

But What can Laï In fact TO DO For THE semiconductor industry? Taiwan has provided TSMC And other companies with tax subsidies And other benefits, but It is departure has gap behind other countries that provide more generous funding And tax breaks. Semi-Analysis chief analyst Dylan Patel said Laï East expected has continue provide chip companies with subsidies And favorable treatment below that of Taiwan environmental protection laws. But has THE even time, Taiwan East NOW playing catch up with places as THE European Union, Japan, South Korea And, of course, China. Patel Remarks that THE WE. has assigned $52 billion For It is chip industry, while China given semiconductors subsidies For purchase tools And apartment buildings For their workers.

In Taiwan, There is THE more of A lower tax burden, but "It is about he," said Patel. "There is Nothing as THE WE. And China to have promulgated And You are kind of struggle with your hand related behind your back" Since Taiwan East A little country with A little economy.

Another barrier East that even However THE semiconductor industry East important has that of Taiwan economy, most people don't do it work In he. Laï has has keep them happy by expenses on other domestic problems, especially Since he doesn't earn by A strong mandate (Laï obtained 40% In A three ways race with THE of the Kuomintang Hou Yu-ih And THE Taiwan People Party KB Wen-je).

"Most people In THE nation are not employee In THE semiconductor industry, even However It is THE vital element of THE economy," said Patel. "SO obviously It is not going has be popular, especially For THE sort of unhappy people WHO gave THE DPP that margin of victory. I think It is going has be Really hard For them has throw serious money has THE semiconductor industry. »

Chris Miller, author of "Chip War: THE Struggle For THE World Most Critical Technology," Also think that THE Taiwanese government East not going has earn THE benefits race.

"It is very hard has earn A grant race with THE Chinese government, SO ideally You wouldn't he go down that path. Taiwan has A a lot smaller economy, SO It is even Stronger," he said. But A advantage Taiwan ...