National Science and Technology Council researcher Scott Huang explained that Taiwan’s vulnerability could have severe global consequences. “If even one missile from China hits a key manufacturing center in Hsinchu, it would probably be impossible to get a new iPhone for three years,” he said.
Located about 80 km southwest of Taipei, Hsinchu Science Park spans 14 million square meters and hosts more than 600 tech companies and research institutions. The government-run zone serves as the nucleus of Taiwan’s world-leading semiconductor sector.
At its core is TSMC, which holds roughly 70% of the global contract chipmaking market. The industry accounts for about 15% of Taiwan’s GDP, with TSMC alone contributing around 9% last year.
Often called Taiwan’s “sacred mountain,” TSMC produces advanced chips for global tech giants including Nvidia and Apple. Any disruption to its operations could send shockwaves through the global economy.
China has not ruled out the use of force against Taiwan to achieve unification. US intelligence agencies estimate that Beijing aims to build the capability to invade Taiwan by 2027, though no attack is seen as imminent.
Still, the risk of conflict is enough to worry global markets. Huang said that if Hsinchu Science Park were hit by missiles, it could take several years to fully restore production capacity.
Chung-Hua Institution for Economic Research President Lien Hsien-ming (連賢明) said a Taiwan crisis could cause a 6–10% drop in global GDP. “Conditions would be catastrophic for the tech sector,” he warned.
President Lai Ching-te (賴清德) has pledged to boost defense spending to 5% of GDP by 2030. Last month, Lai unveiled plans for T-Dome, a new AI-enabled air defense system designed to respond to multiple threats.
Authorities are also assessing the damage potential if Hsinchu Science Park came under drone or missile attack. Officials note that drones, heavily used in the war in Ukraine, pose a growing risk to critical infrastructure.
One Hsinchu-based company, Tron Future Tech, is working to counter that threat. It has developed an anti-drone system capable of detecting and disabling hostile unmanned aerial vehicles using AI and satellite connectivity.
Tron Future Tech CEO and Chair Wang Yu-jiu (王毓駒) said, “Taiwanese authorities plan to allocate more of their budget to install more defense systems across Taiwan.” The company has installed about 15 units across Taiwan and plans to expand deployment with government support.
Michael Nakhiengchanh
Taiwan News, Staff Writer