[War & Business] The Semiconductor Shield

The semiconductor substrate extracted from a Russian military drone that invaded Ukraine last March. It is known that the Russian military uses semiconductors obtained by dismantling household appliances seized from Ukrainian homes due to a shortage of semiconductors caused by sanctions against Russia. Kyiv, Ukraine ? Reuters·Yonhap News Agency

[Asia Economy Reporter Hyunwoo Lee] In 2001, Craig Edison, an expert in the information technology (IT) field in the United States, first proposed the theory of the "Silicon Shield." This theory suggests that although Taiwan, a major global semiconductor manufacturer, faces military threats from China, which seeks to dominate semiconductor supremacy, Taiwan's semiconductor share?accounting for half of the global market?actually serves as a powerful national defense factor.

The core idea of the Silicon Shield theory is that the United States and the European Union (EU), which rely heavily on Taiwan for industrial as well as military semiconductors, will never allow Taiwan to collapse. Especially during the recent invasion of Ukraine, there were reports that even Russia, which was said to have the world's second-largest military power, dismantled circuit boards from refrigerators in Ukrainian civilian homes due to semiconductor shortages, highlighting the securing of military semiconductors as a top security priority for countries worldwide.

The United States has long been highly sensitive to the issue of military semiconductors. Since 2011, when a large number of Chinese-made semiconductors causing airframe defects were found in U.S. Navy helicopters, the U.S. has been striving to secure reliable military semiconductors and safe supply chains. This is why the U.S. has taken the lead in attracting factories of global semiconductor companies such as Taiwan's TSMC and Samsung Electronics to the U.S. and has focused on passing semiconductor support legislation, as these issues are directly linked to national security.

Among the latest advanced weapons, it is no exaggeration to say that none operate without semiconductors except for rifles. In modern warfare, which involves unmanned aerial vehicles (drones), autonomous tanks, and autonomous fighter jets, semiconductors have become indispensable strategic materials.

Weapons used in space, such as intercontinental ballistic missiles (ICBMs) and military satellites, require special semiconductors that can withstand radiation and high temperatures. These special electronic devices, called "Radiation-Hardened (Rad-Hard)" semiconductors, are highly sensitive military technologies, and the U.S. is extremely cautious about their leakage to hostile countries. The fact that Taiwan produces more than 92% of the semiconductors ordered by the U.S. and the West explains why there is a strong effort to defend Taiwan at all costs, as the issue of military semiconductors is deeply involved.

The recent North Atlantic Treaty Organization (NATO) summit, which invited key Asia-Pacific leaders including those from Korea, Japan, Australia, and New Zealand, is closely related to this Silicon Shield issue. If China, observing Russia's invasion of Ukraine, initiates a war aimed at forcibly annexing Taiwan, it could trigger not only a security crisis but also a global semiconductor supply crisis.

South Korea, the world's largest semiconductor manufacturer alongside Taiwan, is also not free from this situation. At this NATO summit, which will be the new government's first diplomatic stage, there is hope that Korea's Silicon Shield will become even stronger.