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The Global Powerhouses Behind Semiconductors

Semiconductors are the heartbeat of modern technology, powering everything from smartphones and laptops to cars and artificial intelligence systems. Yet, two small nations — Taiwan and the Netherlands — hold the keys to this critical industry.

How did these countries become so vital? Why does the world depend on them? Let’s dive into their remarkable story.
 

Taiwan: The Manufacturing Titan

At the core of Taiwan’s semiconductor dominance is Taiwan Semiconductor Manufacturing Company (TSMC)—the world’s largest pure-play foundry.

TSMC produces over 50% of the world’s semiconductors.

It manufactures nearly 90% of the most advanced chips (3 nanometers and below), essential for cutting-edge technologies like AI and 5G.
 

A Brief History

In the 1970s, visionary technocrats like Lee Kuo-ting shifted Taiwan from low-tech manufacturing to high-tech industries.

The 1976 RCA project brought critical technology transfers from the U.S., leading to Taiwan’s first integrated circuit plant.

In 1987, Morris Chang founded TSMC, pioneering the foundry model—focusing solely on manufacturing chips for other companies.
 

Today’s Impact

TSMC is the go-to partner for tech giants like Apple, Nvidia, and Qualcomm.

Its ability to produce chips at the smallest process nodes ensures unmatched performance and efficiency.

Taiwan has become a global semiconductor hub.
 

The Netherlands: The Toolmaker

While Taiwan builds the chips, the Netherlands provides the tools to make them.

At the center of this is ASML, based in Veldhoven—the world’s leading supplier of photolithography systems.
 
What is Photolithography?
It uses light to transfer intricate circuit patterns onto silicon wafers.

For the most advanced chips, Extreme Ultraviolet (EUV) lithography is essential.

ASML is the only company in the world producing EUV machines, which are critical for manufacturing chips at 7 nanometers and smaller.
 

Global Reach

ASML holds a 90% market share in lithography tools.

Companies like TSMC, Intel, and Samsung rely on ASML’s machines to produce the chips that power our digital world.

This makes the Netherlands a cornerstone of the global semiconductor supply chain.
 

A Fragile Ecosystem

The semiconductor industry is a complex global ecosystem, and Taiwan and the Netherlands are its lynchpins.

Taiwan’s dominance in chip manufacturing and the Netherlands’ control over critical equipment mean that disruptions in either country could ripple across the globe.

The 2021 global chip shortage highlighted this dependency:

Automakers halted production.

Tech companies faced delays.

Countries like the U.S. and Germany turned to Taiwan for help.

Without ASML’s EUV machines, advanced chip production would grind to a halt.
 

Looking Ahead

Taiwan and the Netherlands are the backbone of the semiconductor industry.

TSMC’s manufacturing prowess and ASML’s cutting-edge equipment are unmatched.

Both nations are investing heavily to maintain their leadership:

Taiwan is expanding TSMC’s capacity and advancing to 2-nanometer nodes.

The Netherlands is pushing the boundaries of lithography through ASML’s innovations.
 

Challenges on the Horizon

Taiwan faces geopolitical tensions with China, threatening its semiconductor sector.

The Netherlands navigates complex export controls and trade policies, especially with the U.S. and China, impacting ASML’s operations.
 

Conclusion

Despite these hurdles, the future is promising.

The growing demand for semiconductors in AI, 5G, and autonomous vehicles ensures that Taiwan and the Netherlands will remain at the forefront.

Though small in size, their impact is immense.

Through TSMC’s manufacturing dominance and ASML’s technological innovation, these nations power the digital age.

As technology evolves, their roles will only grow more critical—shaping the future of our connected world.

Thank you for watching. Stay tuned for more insights into the world of technology.

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Questions

 

Semiconductor. High technology is controlled by big nations like the US, China, India, South Korea, Russia, the UK, Germany. Is this completely true, largely true, in the middle, yes and no, largely false, totally false, it depends?

Microchip, Integrated Circuit. Does Taiwan dominate the production of smartphones, laptops, and routers?

Transistor. Has Taiwan always been a high-tech powerhouse?

Circuitry. While Taiwan manufactures and supplies microchips and semiconductors in Asia, the Netherlands does the same in Europe. Is this right or wrong?

Motherboard. At present, can any company duplicate and replicate what ASML does?

Bandwidth. Big countries like the US and Germany disrespect and look down on the Netherlands and Taiwan. Is this correct or incorrect?

Firewall. The only challenges facing the Netherlands, Taiwan, and the semiconductor industry are technical in nature. Do you agree?

Malware. Have ASML and TSMC become complacent and lazy? Are they sitting on their laurels?
 
 
 
Processor (CPU). What are some stereotypes of Holland?

Machine Learning, AI. I am surprised and amazed by the technical advances of the Netherlands. Yes or no?

Server. Has your country or its neighbors had any interactions with the Dutch?

Cloud Computing. Is there a “Silicon Valley” in your country?

Data Center, Data Hub. What might happen in the future?

Algorithm. What could or should people do?