TAIPEI (Taiwan News) — Taiwan’s semiconductor industry is a key strategic asset, but it cannot guarantee the country’s security indefinitely, French think tank scholar Mathieu Duchatel said Saturday.

The remark came during the 54th European Federation of Taiwanese Associations meeting in Paris, per CNA. Duchatel’s keynote explored Taiwan’s strategic role in the global semiconductor ecosystem.

Duchatel explained that the Silicon Shield concept assumes Taiwan’s semiconductors, particularly TSMC, are so crucial to AI development that they could deter China from military action. Another argument suggests harming Taiwan’s semiconductor industry would hurt China’s interests.

That view is “not very convincing,”  he said, noting China ranks other priorities above Taiwan’s chip sector. He admitted that while Taiwan is important to the US to counterbalance China, its chip industry should not be seen as a magical shield.

Duchatel also highlighted US influence, noting TSMC and other firms complied with 2020 restrictions on Huawei. He referenced the Biden administration’s “small yard, high fence” approach, designed to safeguard sensitive technologies while defining strategic boundaries.

Regarding Europe, Duchatel said TSMC’s investment in Dresden has drawn attention but Taiwanese tech companies are also expanding in Italy, Poland, and Lithuania. He said the moves are driven by talent and energy needs rather than purely strategic or security motives.