Since 2022, by implementing export controls, the United States has been applying increasing pressure on China’s technological pursuits, weaponizing its dominance in advanced AI chips to limit Beijing's military and economic advancement. Washington’s latest salvo? Even stricter controls on chips, equipment, and talent, all under the banner of "national security." Faced with escalating restrictions, Chinese firms have turned to the cloud, by tapping into domestic and U.S.-based services to access high-performance computing power and keep their AI ambitions alive. This adaptation has allowed Chinese firms to offset some of the sanctions’ intended effects, adding complexity to the ongoing U.S.-China tech rivalry.

 The concept of ‘sovereignty’in the semiconductor supply chain has sparked significant debate.This article will first explain the semiconductor supply chain and then explore why ‘sovereignty,’ traditionally a political term, is applied in this commercial context. Moreover, it addresses the role of Taiwan in the current technological battle between the US and China emphasizing the importance of robust technology manufacturing in this rivalry.

The Indo-Pacific region is now central to global strategy, shifting from merely containing China to harnessing this area’s economic potential. Taiwan, despite being a dynamic player in this region, often receives limited attention in foreign policy discussions focused on government-to-government interactions. This article seeks to highlight Taiwan's critical role beyond traditional narratives. Taiwan’s advanced economy, particularly in high-tech industries, can support Europe's efforts to diversify supply chains and enhance digital sovereignty. By recognizing Taiwan as a valuable economic partner, Europe can deepen its engagement in the Indo-Pacific strategy.

The U.S. is reportedly investigating whether TSMC is supplying AI or smartphone chips to Huawei, which is barred from using American technology. While TSMC has denied the claims and halted shipments to some suspected firms, the U.S. is expected to further intensify its measures against China. As the EU, Japan, and South Korea prioritize economic security, this op-ed calls on Taiwan’s industry, government, and academia to proactively gather insights, anticipate risks, and develop strategic responses.

Economic security has rapidly evolved from a niche policy debate into a cornerstone of national strategy. Nowhere is this more evident than in the Indo-Pacific, where Taiwan — critical to global supply chains — is at the center of this complex discourse. Economic security and technological geopolitics has placed supply chain resilience and the Indo-Pacific strategy at the forefront of international discussions.