Taiwan’s “Silicon Shield,” built on its dominance in semiconductor production, is drawing global attention, according to a July 22 report by Finland’s national broadcaster Yle. The report says Taiwan produces more than 90% of the world’s most advanced chips, making it a critical pillar of the artificial intelligence boom and key node in the global supply chain. 

Yle Asia’s correspondent visited Hsinchu, often called Taiwan’s Silicon Valley, and interviewed faculty and students at National Tsing Hua University. The report highlighted Taiwan’s role in supplying roughly 60% of the global semiconductor supply, powering products ranging from smartphones to electric vehicles to AI computing systems. 

The surge in demand for advanced chips has helped push Taiwan’s stock market into the world’s top five by market value this year. Taiwan Semiconductor Manufacturing Co. (TSMC), a major supplier to Apple and Nvidia, was identified as the central driver of this growth and at times accounted for more than 40% of the local market’s total capitalization. 

Experts cautioned that risks remain, including geopolitical tensions and overseas expansion pressures. Still, researchers said global reliance on Taiwan’s chips raises the cost of conflict, reinforcing the deterrent effect known as the silicon shield.