At the international press conference held at the Democratic Progressive Party's headquarters after the general election results were announced, President-Elect Lai Ching-te, a.k.a William Lai, said he would give the semiconductor industry his full support after taking office.
In the press conference, Bloomberg asked how Lai would reduce the geopolitical risks that may fall on Taiwan's advanced technology industries such as the semiconductors after his election.
"The semiconductor industry is critical to the global artificial intelligence era, in which Taiwan has an advantage, but Taiwan also owes a responsibility to the world." Lai said, "The semiconductor industry in Taiwan is a common asset of the world, and we are a part of the global division of labor in the supply chain."
"Taiwan cherishes the semiconductor industry, and we hope China and the international society will cherish this industry as well," Lai emphasized that he will maintain the status quo and Taiwan will be happy to have exchanges and cooperation with China to promote cross-strait welfare and create peace and co-prosperity as long as China treats it with equal dignity.
"As for the development of the semiconductor industry, I will vigorously assist the semiconductor industry in the future," Lai continued, " To form a more complete industrial chain - from materials, equipment, research and development, IC design, manufacturing, packaging, and testing, so that the semiconductor industry in Taiwan can continue to flourish and can also benefit the economic development of the world."
Lai did not elaborate on how he would support the semiconductor industry. However, industry leaders have repeatedly called for the government's support in solving the shortages in power, water, talent, human resources, and land over the past few years. Since the advanced-node semiconductor processes will consume much more electricity and require green energy, Lai's staunch position in excluding nuclear energy from future energy policy in his Presidential Debate sessions reflects a potential challenge for the semiconductor industry in Taiwan. Lai has clearly expressed that nuclear energy is not a feasible option for Taiwan, although COP28 leaders voiced their recognition of nuclear energy's critical role in reducing the effects of climate change.
Industry experts expressed concerns that since the percentage of renewable energy in electricity generation has fallen short of the planned targets, the export-oriented semiconductor industry will likely face the dilemma of carbon lock-in.
It is also important to note that the geopolitical tension in the Taiwan semiconductor industry exists in multi-folds, including the compliance risks of misstepping the redlines of US regulations.
The US Department of Commerce will send a delegation to Taiwan in January 2024 to meet with the local semiconductor manufacturers and IC design vendors to organize briefings, confirmed by the Minister of Economic Affairs Wang Meihua in early December.
Wang said the US announced on October 17, 2023, the expansion of export controls on mainland China has a volume of more than 300 pages. "Although Taiwanese companies generally understand the provisions, there are still many details."
"The US is willing to explain to major customer countries, allowing manufacturers to understand the relevant provisions better. Taiwan factories can communicate with the US face to face," Wang Meihua told the press, "Taiwan and Taiwanese companies need to do so."
