CHIPPING AT THE
SEMICONDU MONOPOLY THE GLOBAL DIGITAL ECONOMY IS ON TRACK TO SMASH A TRILLION US DOLLARS BY 2035 AND TAIWAN IS INCREASINGLY BECOMING A CRITICAL ENABLER OF THIS.
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t takes an integrated semiconductor supply chain involving thousands of companies and millions of people to form the backbone of today’s digital economy. Such complexity drives 5G, Artificial Intelligence, Internet of Things (IoT), automotive, smart factories, quantum computing and data processing. All was going well, too, until Covid-19 came to town. A shortage of integrated circuits has disrupted the productivity of automakers and commercial vehicle manufacturers worldwide. This key component, which is used across a range of sectors from transportation to communications to IT, is essential for managing the control and flow of modern electronic devices and equipment. These tiny transistors made from silicon are what enable our smartphones and computers to function. Following advances with in-cab It reportedly takes eight hours to drive around the entire island of Taiwan.
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technology and telematics talking to trailers and feeding information back and forth to fleet controllers, semiconductors continue to surge in demand. The impact of Covid-19 in terms of government enforced restrictions and protective measures carried out by private industry has slowed the rollout of semiconductors and the supply chain itself has caused further delays with delivery meaning that the average build times for various commercial vehicles has inflated by weeks, even months. The situation will improve in due course but this hiccup in the grander scheme is worth exploring. After all, Taiwan, according to a report from Boston Consulting, is accountable for 92 per cent of the world’s most advanced semiconductor manufacturing capacity. An immediate concern, similar to China’s market domination of urea, the key ingredient of diesel exhaust fluid, is the risk of associated with the concentration of semiconductor production in specific geographic regions. Add geopolitical tension to the mix when it comes to import/export tariffs for the provision of essential tech componentry and before you know it a trade war may ensue.
