Observers said replicating Taiwan’s ecosystem requires not only a massive investment in infrastructure but also years of coordination among firms, local governments, and global partners.
While other Asian nations such as Malaysia and Vietnam are vying for a piece of the lucrative semiconductor pie, analysts said it will take them time to catch up to Taiwan’s standards.
“Taiwan has made breakthroughs step by step in the past 40 years. Taiwan can handle everything from upstream chips to downstream assembly of electronic products. This is Taiwan’s unique strength,” said Hwang.
“It’s almost impossible for emerging countries to do this… in the short term. My view is that this ecosystem will last at least 10 years, it will be a golden decade (for Taiwan).”
CHALLENGES FACING TAIWAN
However, observers also cautioned that Taiwan’s dominance in semiconductors is not without risks.
Taiwan is due to become a super aged society next year, with 20 per cent of its population over the age of 65.
The problem is further exacerbated by its total fertility rate – one of the world’s lowest.
Official data shows that Taiwan could lose 35 per cent of its population by 2070, dealing a big blow to its workforce.
“The falling birthrate is a serious problem. It’s not just general workers that are in shortage, there’s also a shortage of engineers,” said Hwang.
However, some Taiwanese companies are already making necessary preparations to cope with labour shortage.
For instance, Quanta, the world’s largest laptop producer, has reduced its staff to a third of its workforce from five years ago by replacing employees with smart manufacturing technology.
Outside of domestic issues, fears of a military conflict in the Taiwan Strait amid strained relations with China could also dampen investor confidence and derail Taiwan’s AI dreams.
