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Taiwan has been threatened by China for decades without a clear guarantee of protection from the United States. China’s anaconda strategy has contributed to a peak performance in Taiwan’s semiconductor technology which not only protects Taiwan by increasing the probability for protection by the United States. The shift of high-performance semiconductor production from Taiwan to the United States is unfeasible, because the necessary climate of threat cannot be reproduced there. Even more, diversifying Taiwan’s semiconductor production geographically would be undesirable, because geopolitical instability would rise.

Will the US Protect Taiwan in Case of Chinese Military Aggression?