TAIPEI (Taiwan News) — The author of "Chip War: The Fight for the World's Most Critical Technology" says the importance of the semiconductor industry needs to be understood, and in order to do that, it is crucial to understand Taiwan and TSMC’s central role in the process.

Speaking to Startup Island TAIWAN Podcast, Chris Miller said the Taiwanese chip industry is a story of success but also fragility. He said that Taiwan is particularly vulnerable to disruptions in the global supply chain.

The future of the Taiwanese chip industry depends on its ability to innovate, according to Miller. He said Taiwan needs to invest in research and development, and it needs to attract top talent from around the world.

Miller said the Taiwanese government plays a key role in supporting the chip industry, providing subsidies and tax breaks, and helping to attract foreign investment.

Miller spoke about the challenges Taiwan faces as a global leader in semiconductors. He said that despite increased competition with China, the threat of protectionism, and the need to invest in research and development, he remains optimistic about the future of Taiwan's semiconductor industry.

Miller met with TSMC founder Morris Chang in Taiwan in March, and the two agreed there was increasing polarization in the chip industry between China and the U.S. Chang also said that he supports recent U.S. industrial policies designed to combat China’s growth in the industry.

The European chip industry has not been as successful as the Taiwanese chip industry, Miller said. He said this is because of a lack of government support, investment in research and development, and professionals with the necessary skills.

Listen to the full conversation with Chris Miller on Startup Island TAIWAN Podcast.