Taiwan—The Silicon Island

This executive briefing provides information on the recent developments in the Taiwanese semiconductor industry. Taiwan achieved a prominent role in the global semiconductor industry by providing contract manufacturing services to third-party customers, capturing nearly 70 percent of global foundry revenue in recent years. With output almost doubling during 2018–22, the rapid growth of Taiwan’ssemiconductor industry is important to its economy and trade. Although Taiwan’s government has implemented proactive policies to promote and strengthen the industry, Taiwan’s semiconductor industry faces multiple vulnerabilities, such as natural disasters (e.g., typhoons and earthquakes), risks related to reliability and sustainability of energy and water supply, as well as potential regional geopolitical threats