Taiwan thrives despite increasing threats from China

AI: Taiwan's semiconductor industry is currently experiencing high demand, particularly for advanced chips due to the rise of AI technologies. The demand for AI chips is projected to continue growing, with Taiwan's semiconductor subindex up 43% from the previous year.

The Taiwan Semiconductor Manufacturing Company (TSMC) is set to expand its semiconductor manufacturing operations in the United States by an additional $100 billion, bringing its total investment to $165 billion. This expansion includes plans for three new fabrication plants and two advanced packaging facilities in Phoenix, Arizona, which is expected to create 40,000 construction jobs and drive over $200 billion in economic output across the state over the next decade. This move is part of TSMC's commitment to support U.S. innovation and reduce reliance on foreign semiconductor production. Read more.

Unrecognized Nation

Taiwan's ties to the USA help to offset its precarious global standing. As of 2025, only a dozen countries officially recognize its status as an independent nation. Read more on why it is not a member of the UN and has few official friends.

The World Population Review reports: “Despite China’s efforts to restrict its economic and political growth, Taiwan has become one of Asia’s major economic players and one of the world’s top computer technology producers. Yet 59 countries (as well as the European Union, Hong Kong, and Macau) have established unofficial diplomatic relations with Taiwan/RoC, including the United States, France, Germany, Japan, Russia, and the United Kingdom. Taiwan is also considered a democracy and is consistently ranked as one of the freest countries in Asia by metrics such as the 2021 Freedom House Freedom Index, the Reporters Without Borders World Press Freedom Index, and the Heritage Index of Economic Freedom.”

A Map showing the free countries of the world Heritage.org Index of Economic Freedom per nation