Taiwan Strengthens Semiconductor Supply Chain to Meet Global Demand

Intermediate Level | May 25, 2025

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Taiwan Semiconductor Supply Chain 2025: Strengthening Amid Global Demand

Taiwan is making big moves to protect its leadership in the global semiconductor industry and strengthen the Taiwan semiconductor supply chain in 2025. On May 24, 2025, President William Lai called for stronger international cooperation to help create a more stable and fair supply chain for computer chips. He encouraged partnerships with countries like Japan, the United States, and European nations to improve supply chain resilience and fight unfair pricing practices.

New Policies and Support for Local Industry

To strengthen its chip-making power, Taiwan has introduced new policies. These include financial support for factories, tax breaks for chip companies, and programs to train more skilled workers. These steps are meant to keep Taiwan ahead in advanced chip manufacturing and support the Taiwan semiconductor supply chain in 2025, which is important for new technologies like artificial intelligence (AI), robotics, and 5G.

Global Partnerships and High-Tech Investments

International companies are also investing more in Taiwan. For example, Nvidia is planning to build an AI supercomputer in Taiwan with help from local partners. This shows Taiwan’s key role in the global tech world. By working together with global companies, Taiwan can continue to lead in chip design and development.

Why This Matters for the World

Semiconductors are used in nearly every modern device—from smartphones and cars to medical equipment and defense systems. A stable and reliable supply chain is important for the global economy. Taiwan’s leadership helps prevent shortages and supports innovation in many industries around the world.

Vocabulary

Semiconductor (noun): A material used to make computer chips.
- Example: Taiwan is one of the top producers of semiconductors in the world.
Supply chain (noun): The system of making and delivering a product.
- Example: A strong supply chain ensures computer chips arrive on time.
Resilience (noun): The ability to recover quickly from problems.
- Example: Taiwan is working to improve supply chain resilience.
Artificial intelligence (noun): Computers that can think or learn like humans.
- Example: AI needs advanced chips to work well.
Investment (noun): Money or resources put into something for future gain.
- Example: Nvidia’s investment in Taiwan will help develop new AI tools.
Incentive (noun): Something that encourages action.
- Example: Tax breaks are incentives for companies to build factories.
Shortage (noun): Not enough of something that is needed.
- Example: A chip shortage affected car production worldwide.
Innovation (noun): A new idea, method, or device.
- Example: Taiwan supports innovation in advanced chip technology.
Partnership (noun): A cooperative relationship between people or groups.
- Example: Taiwan is building partnerships with countries and companies.
Diversify (verb): To add variety or make more balanced.
- Example: Taiwan wants to diversify its suppliers to avoid risk.

Discussion Questions (About the Article)

Why is Taiwan important in the global semiconductor industry?
What new policies is Taiwan using to support its chip industry?
How is Nvidia working with Taiwan?
Why are strong supply chains important for other countries?
What are the risks of depending on just one country for chips?

Discussion Questions (About the Topic)

What devices do you use that depend on computer chips?
How do you think AI will affect our lives in the future?
Should governments spend more on technology training?
How do international partnerships help in tech development?
Have you heard of any other countries trying to grow their chip industries?

Related Idiom

“Put all your eggs in one basket”

Meaning: To depend completely on one plan or source.
Example: Relying on only one country for chips is like putting all your eggs in one basket.

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This article was inspired by reports from Taipei Times and The Wall Street Journal.