Taipei City
Capital of the silicon shield: TSMC produces 90% of advanced chips, 64% global foundry share. 2024: $165B+ semiconductor revenue (20.7% GDP). By 2026, 2nm production and AI design expansion test whether tech dominance creates security or vulnerability.
Taiwan's capital anchors an economy where a single company (TSMC) produces 90% of the world's most advanced semiconductors. Taipei evolved from Japanese colonial administrative center to export manufacturing hub to the financial and design headquarters for the "silicon shield" that makes the island indispensable to global technology supply chains.
The transformation accelerated after 1980 when Hsinchu Science Park opened. Taipei became the brain while Hsinchu became the fabrication center. By 2024, Taiwan's semiconductor industry generated $165B+ in revenue (20.7% of GDP), with integrated circuits comprising 41.5% of exports. TSMC alone accounts for 8% of national output and 64% of global foundry market share. Nvidia, AMD, and Apple all depend on chips manufactured 40km south of Taipei.
This concentration creates both prosperity and vulnerability. Taiwan's GDP grew 4.6% in 2024, driven by AI chip demand, but earthquakes, water shortages, and geopolitical tensions all threaten production. The "silicon shield" thesis—that the world's dependence on Taiwanese chips deters Chinese invasion—structures strategic thinking but remains untested.
2026 trajectory: TSMC 2nm production begins (Hsinchu and Tainan); Taiwan may overtake South Korea in per-capita wealth. Taipei diversifies into AI chip design while managing water and power demands of advanced manufacturing. The city becomes nerve center for reshaping global tech supply chains.