Location
Military and Diplomacy
Level of Education
Undergraduate
Keywords
China, Taiwan, Semi-Conductors, Supply Chain, Technology Policy, Intellectual Property Theft, Defense Industrial Base, Economic Decoupling, Military Posture, National Security
Abstract
This paper explores the complex economic interdependence between the US, China, and Taiwan, specifically in the semiconductor industry. China’s increased aggression and intellectual property (IP) theft threatens to unbalance the iron triangle of US, China, and Taiwan trade relations. The problem overview elaborates on Taiwan’s crucial role in the semiconductor supply chain, and China’s threat against it. The argument is made that the US must take a nuanced and multifaceted approach to solving the diplomatic, economic, and military policy problem. Criteria for success are outlined, emphasizing the need to address root causes and not compromise US commitment to a free and fair Indo-Pacific region. Reviewing legislative history, including the 2022 “CHIPS and Science Act” this paper identifies the major stakeholders and conducts an alternative policy analysis. Proposed policy measures include economic decoupling, supply chain risk mitigation, enhanced IP protection and a strong and credible military posture. This paper recommends a comprehensive and unified trade strategy, in conjunction with a reinvigorated defense industrial base to support US forces in the Pacific theater. A unified national security grand strategy will protect critical supply chains, deter IP theft, soften Chinese aggression, and safeguard the global economy.
Included in
Defense and Security Studies Commons, Economic Policy Commons, Military, War, and Peace Commons, Public Policy Commons, Science and Technology Policy Commons
Rethinking Supply Chains: Mitigating the Risk of Chinese Dependence and Protecting US Semiconductor Intellectual Property
Military and Diplomacy
This paper explores the complex economic interdependence between the US, China, and Taiwan, specifically in the semiconductor industry. China’s increased aggression and intellectual property (IP) theft threatens to unbalance the iron triangle of US, China, and Taiwan trade relations. The problem overview elaborates on Taiwan’s crucial role in the semiconductor supply chain, and China’s threat against it. The argument is made that the US must take a nuanced and multifaceted approach to solving the diplomatic, economic, and military policy problem. Criteria for success are outlined, emphasizing the need to address root causes and not compromise US commitment to a free and fair Indo-Pacific region. Reviewing legislative history, including the 2022 “CHIPS and Science Act” this paper identifies the major stakeholders and conducts an alternative policy analysis. Proposed policy measures include economic decoupling, supply chain risk mitigation, enhanced IP protection and a strong and credible military posture. This paper recommends a comprehensive and unified trade strategy, in conjunction with a reinvigorated defense industrial base to support US forces in the Pacific theater. A unified national security grand strategy will protect critical supply chains, deter IP theft, soften Chinese aggression, and safeguard the global economy.
