Dr. Sahar Tahvili (Ph.D.), is an Adjunct Associate Professor in the AI Industrial Systems in Sweden and the co-author of the book, Artificial Intelligence Methods for Optimization of the Software Testing Process: With Practical Examples and Exercises along with Leo Hatvani, a machine learning engineer and an expert in natural language processing. Dr. Tahvilli was nominated for 2024 DAIR Award for the Artificial Intelligence Professional of the year. She was formerly a senior researcher at the Research Institutes of Sweden (RISE) and is also a television panelist particularly on BBC Persian.

The Indo-Pacific Politics talked with Tahvili about the geo-politics around the semi-conductor industry and about why Taiwan, a global tech-leader is at the center of this geopolitics.

Indo-Pacific Politics: Why are semiconductors a matter of intense geo-politics today?

Sahar Tahvili: Semiconductors are critical to AI, autonomous systems, telecom, and defense areas. Their production is heavily concentrated, especially in Taiwan, making supply chains vulnerable and turning chip access into a matter of national security and technological sovereignty. With AI and cloud systems dependent on advanced chips, control over semiconductors now means geopolitical leverage.

Indo-Pacific Politics: Why is it so concentrated in Taiwan? What role did the US play in making Taiwan a global tech-power?

Sahar Tahvili: It’s about cost and about geopolitics. Taiwan focused early on precision manufacturing and built strong government-industry coordination. The U.S. helped by providing early technology and relying on Taiwan to produce chips for companies like Apple and NVIDIA. Today, Taiwan produces almost 90% of the most advanced chips, making it a global tech and geopolitical hotspot.

Indo-Pacific Politics: Does this mean that the way US encouraged manufacturing supply chains to be generally China based, it encouraged tech related industry to similarly be centered in Taiwan? How much role did US play in building the giant TSMC (Taiwan Semiconductor Manufacturing Company) and how much does TSMC rely on the US?

Sahar Tahvili: Yes! but differently. While the U.S. moved general manufacturing to China for cost savings, Taiwan became central to tech hardware, especially semiconductors, because of its technical expertise, political alignment, and reliability. Unlike China, Taiwan was seen as a trusted partner for sensitive, high-value technology. U.S. companies outsourced chip production to Taiwan not just for cost, but for TSMC’s unmatched ability to produce advanced chips at scale.

The U.S. played a key role in building Taiwan’s chip industry by sharing early know-how and becoming TSMC’s largest customer base. TSMC still relies on U.S. tools, software, and design IP, while the U.S. depends on TSMC for advanced chip manufacturing. This mutual dependence makes semiconductors a major geopolitical issue.

TSMC still relies on U.S. tools, software, and design IP, while the U.S. depends on TSMC for advanced chip manufacturing. This mutual dependence makes semiconductors a major geopolitical issue.

Sahar Tahvili

Indo-Pacific Politics: Is it true that Taiwan semiconductor industry is reliant on China? What kind of a competition exists between the two?

Sahar Tahvili: Taiwan’s chip industry relies on China for exports, assembly, and some materials, but not for advanced manufacturing. China is a major customer, but its own chip makers, like SMIC (Semiconductor Manufacturing International Corporation), lag far behind Taiwan in cutting-edge technology.

While economically linked, Taiwan and China are strategic rivals in semiconductors, with growing U.S. pressure to limit China’s access and support Taiwan’s global role.

Indo-Pacific Politics: Do you want to elaborate on US, politically and technologically supporting Taiwan’s global role as a tech leader?

Sahar Tahvili: Generally, the U.S. supports Taiwan’s tech leadership to secure access to advanced chips and counter China’s rise. It does so by:

1: Encouraging TSMC to build fabs in the U.S. to reduce supply chain risk.
This support, In my opinion, helps preserve Taiwan’s lead while reinforcing the U.S. tech security.

2: Restricting exports of chip tools to China.

3: Deepening ties with Taiwan’s chipmakers, especially Taiwan Semiconductor Manufacturing Company.

Indo-Pacific Politics: How do you expect Taiwan semiconductor industry to be by 2030? Any new developments expected?

Sahar Tahvili: I expect Taiwan to still be the backbone of global advanced chip manufacturing. TSMC is pushing into 2 nm and beyond, and the AI wave is accelerating demand. They’ve proven they can scale and deliver with precision, something few others can replicate at that level.

Indo-Pacific Politics: US wants TSMC to invest in the US. How does that fit into the supply chain?

Sahar Tahvili: It’s a strategic move. Localizing part of the supply chain in the U.S. reduces risk and aligns with geopolitical shifts. But let’s be clear: the core expertise, R&D, and efficiency are still rooted in Taiwan. The U.S. fabs are a backup, not a replacement.

It’s a strategic move. Localizing part of the supply chain in the U.S. reduces risk and aligns with geopolitical shifts.

Sahar Tahvili

Indo-Pacific Politics: Any challenges for Taiwanese semiconductor industry?

Sahar Tahvili: There’s no question Taiwan is under pressure. Geopolitical risks, energy and water constraints, and the fight for top engineering talent are real. And with rising cyber threats, the focus on security and resilience is more important than ever.

Indo-Pacific Politics: Is there anything else that you would like to share on this topic with our readers?

Sahar Tahvili: Taiwan’s position is unique, it’s not just a manufacturing hub, it’s a strategic pillar of the global tech ecosystem. The so-called “silicon shield” might deter aggression, but long-term stability will depend on how well they balance innovation, sustainability, and international cooperation.