Editors‘ Note:
This article was compiled and written by OpenAI’s ChatGPT Plus and reviewed by the human editors of Eat News.
The Republic of China’s President Tsai Ing-wen awarded the Medal of Honor to former US National Security Advisor Robert O’Brien for his contributions to Taiwan-US relations. O’Brien had previously stated that the US would destroy Taiwan’s semiconductor factories if Communist China seemed on the verge of controlling them after an invasion.
A national security advisor in the Trump administration, O’Brien told Semafor the US “and its allies are never going to let those factories fall into Chinese hands.” Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest chipmaker, accounting for an estimated 90% of the market for advanced processors. The company produces chips for various devices and equipment used daily, such as phones and cars. More advanced chips manufactured by TSMC are utilized in highly sophisticated technologies like machine learning and guided missiles.
If China were to take control of these factories, it would become “like the new OPEC of silicon chips,” according to O’Brien, adding that China would then have the power to “control the world economy.” The former advisor compared the US destroying the factories to British Prime Minister Winston Churchill’s order to beat France’s naval fleet during World War II after France surrendered to Germany.
Apple is TSMC’s largest customer, and the manufacturer produces most of the 1.4 billion smartphone processors worldwide. Additionally, around 60% of the simpler microcontrollers used by automakers are reportedly made by the company.
Although much of the research and development for semiconductors occur in the US, manufacturers have decided over the past 30 years that it is best to outsource production. A senior advisor at the Center for Strategic and International Studies, William Alan Reinsch, explained, “You build a big factory, and you crank these things out by the thousands, and you do it in a low-wage, nonunion country that probably doesn’t have environmental requirements. You keep all the design and IP at home, and you do all your sales, marketing, and service at home, and that’s where you make money.”
If China successfully invades, O’Brien is not the first to raise the idea of destroying Taiwan’s semiconductor factories. Two US scholars recommended the move in a paper published by the US Army War College in 2021. The report suggested that the United States and Taiwan should plan for a targeted scorched-earth strategy that would render Taiwan unattractive if ever seized by force and costly to maintain. This could be done most effectively by threatening to destroy TSMC facilities, the most crucial chipmaker in the world and China’s top supplier. The only alternative for cutting-edge designs is Samsung, based in South Korea, a US ally.
However, Chen Ming-tong, the director-general of ROC’s National Security Bureau, has said it would be unnecessary for the US to destroy Taiwan’s semiconductor factories in case of an invasion. He explained that the system is already deeply integrated into the global supply chain, meaning that we and other countries can shut down production without physically destroying the factories. For example, TSMC could not produce specific chips without components from Dutch supplier ASML. “Even if China got a hold of the golden hen, it wouldn’t be able to lay golden eggs,” Chen said.
As tensions between mainland China and Taiwan continue escalating, analysts predict a Chinese invasion of the island within the next few years. If China does invade Taiwan, “that would be the biggest impact we’ve seen to the global economy—possibly ever,” said Glenn O’Donnell, vice president, and research director at Forrester. He added that the consequences could be worse than the stock market crash in 1929.
In response to these concerns, O’Brien took to Twitter on March 14th to clarify his position. He stated that Taiwan has thrived due to its freedom, the rule of law, and some of the most hardworking locals in the world. Its impressive semiconductor industry is the most important example of Taiwan’s success, earning the world’s admiration and becoming a target for Beijing. The only country with military plans to take over Taiwan and its industrial base is the People’s Republic of China. The United States, on the other hand, only has plans to protect Taiwan and its people. The fact is, if the People’s Republic of China invades Taiwan, the island’s chip factories will cease to function. Chip factories rely on foreign energy, equipment, and expertise, all of which would be cut off if China invaded. Most importantly, Taiwan’s skilled engineers, scientists, and managers would flee to freedom, ensuring that China’s invasion would never achieve the Chinese Communist Party’s goal of controlling the chip market.
On the afternoon of March 21st, the ROC President Tsai Ing-wen presented the Special Order of Brilliant Star with Grand Cordon to Robert O’Brien in the Presidential Office in Taipei, recognizing his contributions to Taiwan-US relations. President Tsai expressed that exchanges between Taiwan and the United States have become increasingly close in recent years. Both sides have created more niche opportunities for Taiwan-US economic and trade relations, working together to promote prosperity and development in the Indo-Pacific region. She also thanked the United States for its attention to Taiwan’s security issues. She hoped that Taiwan and the United States could continue to deepen their partnership in security cooperation and economic and trade exchanges.
During his acceptance speech, O’Brien expressed great honor in receiving the Special Order of Brilliant Star with Grand Cordon, which he considered a tremendous honor for himself and his family. He also thanked the Taiwanese government for the warm reception during his visit. Having visited many countries worldwide, O’Brien commended Taiwan’s exceptional hospitality.
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