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Source: The post impact of Taiwan’s stability has been created, based on the article “ Chip-maker Taiwan’s electorate has rebuffed Beijing” published in “Live mints” on 16th January 2024.
UPSC Syllabus Topic: GS paper2-International Relations-Effect of policies and politics of developed and developing countries on India’s interests.
News: This article explains Taiwan’s importance in Asia’s geopolitics and global technology due to its semiconductor industry.
Taiwan recent elections
In Taiwan’s recent elections, the Democratic Progressive Party (DPP) secured a significant victory, with Vice President Lai Ching-te winning the presidency. This election marked the third consecutive win for the DPP in the presidential race.
Despite success at the presidential level, the party faced a setback as it lost its narrow legislative majority. This loss is pivotal as it limits President Lai’s capacity to advance policies towards Taiwan’s independence from mainland China.
Economic and Political History of Taiwan
Taiwan was under Japanese rule from 1895 to 1945, during which it saw significant development.
Post World War II, Taiwan came under the control of the Kuomintang (KMT), the then ruling party of mainland China.
The KMT’s takeover led to resentment among native Taiwanese due to asset expropriation.
A major event was the brutal suppression of the Taiwanese nationalist uprising on 28 February 1947 by the KMT.
After losing the Chinese civil war in 1949, the KMT, led by Chiang Kai-shek, fled to Taiwan with approximately 2 million people.
The KMT established a dictatorship but focused on economic development, particularly in electronics and technology.
Morris Chang, a key figure, was recruited to run the Industrial Technology Research Institute and helped establish TSMC, now the world’s largest semiconductor maker.
Recent Relationship of Taiwan With China?
Taiwan’s relationship with China has been marked by significant political and ideological differences. The Democratic Progressive Party (DPP) in Taiwan advocates for independence, contrasting with China’s claim over Taiwan.
Historically, the Kuomintang (KMT) agreed with China on the “One China” policy, but with different interpretations.
For information on China-Taiwan relation read here
Taiwan Strategy in Global Tech
- Taiwan dominates the semiconductor market, producing over 60% of the world’s semiconductors, and making more than 90% of the world’s most sophisticated semiconductors. These chips are essential for a wide range of products, including laptops, smartphones, satellites, cars, and various electrical appliances.
- Beyond semiconductors, Taiwan’s influence extends to electronics, where Taiwanese-owned companies like Foxconn and Pegatron are major players in Chinese electronics exports, assembling products in China using components made in Taiwan.
What is the impact of Taiwan’s stability on India?
Technology: Taiwanese companies are integral to India’s ambition in technology. Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) are central to India’s efforts to develop modern semiconductor capacity.
Manufacturing: Major Apple suppliers such as Foxconn and Pegatron, both Taiwanese firms, are vital to India’s manufacturing sector. Their involvement is crucial for India’s goal to attract global supply chains.
Geopolitical Stance: A stable Taiwan Strait is beneficial for India. An autonomous Taiwan aligns with New Delhi’s interests. Stability in Taiwan helps ensure the smooth operation of technology and manufacturing collaborations between the two nations.
For information on India and Taiwan relations read here
Question for practice:
Examine Taiwan’s significance to India in terms of technology, manufacturing, and geopolitics
