Taiwan's strength in semiconductors could be its ‘Achilles heel,' economist says

Taiwan’s economy should consider diversifying away from its semiconductor industry, according to an economist. The economist pointed out that 40% of Taiwan’s exports are currently in the semiconductor sector, with many of these exports going to China. The dominance of Taiwan’s semiconductor industry is largely attributed to the presence of TSMC, the world’s largest contract chip manufacturer. There is a risk that China might develop its own chip-making capabilities, which could significantly impact Taiwan’s economy. The economist suggested that Taiwan should focus on encouraging growth in other industries to reduce its reliance on semiconductors.