The "Silicon Shield" theory is Taiwan's most potent defense against Chinese aggression, leveraging its critical position in the global tech supply chain as a form of deterrence. But now, Taiwan is not just relying on its technological might—it’s reinforcing this shield through strategic alliances, notably with the United States. By deepening economic and diplomatic ties, Taiwan is paying tribute to a time-tested strategy: one that has historically ensured survival through symbiotic relationships with global powers. In essence, Taiwan's strength lies not just in its silicon, but in its alliances—an evolving defense that increasingly intertwines its future with the interests of the West.
Don't forget the huge ecosystem of small, medium and large companies in Taiwan that occupy all parts of the tech value chain - often dominating niche areas as oligopolies... Most are overlooked by foreign investors as they trade on the Taipei Stock Exchange...
Strong thesis! It’s a high-quality business with a monopolistic edge. I feel like many investors are too focused on uncertainties like U.S.-China tensions.
Lovely analysis. Look forward to more such goldmine content.
Appreciate it!!
I linked to your post in my Monday emerging market links collection post: https://emergingmarketskeptic.substack.com/p/emerging-markets-week-march-17-2025
Thank you!!
The "Silicon Shield" theory is Taiwan's most potent defense against Chinese aggression, leveraging its critical position in the global tech supply chain as a form of deterrence. But now, Taiwan is not just relying on its technological might—it’s reinforcing this shield through strategic alliances, notably with the United States. By deepening economic and diplomatic ties, Taiwan is paying tribute to a time-tested strategy: one that has historically ensured survival through symbiotic relationships with global powers. In essence, Taiwan's strength lies not just in its silicon, but in its alliances—an evolving defense that increasingly intertwines its future with the interests of the West.
Don't forget the huge ecosystem of small, medium and large companies in Taiwan that occupy all parts of the tech value chain - often dominating niche areas as oligopolies... Most are overlooked by foreign investors as they trade on the Taipei Stock Exchange...
Thanks
Did you watch the interview with the founder? It was an amazing thing.
Strong thesis! It’s a high-quality business with a monopolistic edge. I feel like many investors are too focused on uncertainties like U.S.-China tensions.
Agreed!
Maybe, but Taiwan is a bit of an unpredictable territory