EU-Taiwan Semiconductor Supply Chain: Resilience amid the Digital and Green Transition

As the European Union (EU) sets ambitious goals of maximizing a ‘Digital Decade’ through its Digital Transition plan and attaining carbon neutrality in its Green Transition plan, technology becomes the essential factor for the region to achieve its vision of a modern Europe. For decades, the region has relied on East Asia as a major source of technological inputs and finished products, especially for semiconductors. Among many major companies in the region, Taiwan’s Taiwan Semiconductor Manufacturing Corporation (TSMC) stands out to be the most important supplier of microchips for many modern economies. However, in recent years, supply chain integrity has become a significant topic for policy discourse amid various factors that may disrupt and negatively affect the flow of goods. This issue brief seeks to provide an overview of the EU-Taiwan semiconductor supply chain in the context of the EU’s Digital and Green Transitions, and suggestions to strengthen the supply line between both sides.

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