Why Taiwan Is Becoming the Strategic Center of the Global Chip Fight

Q1. What new signals suggest a shift in US semiconductor policy toward China?
A potential rule change reported by Reuters shows the US Commerce Department is considering allowing Nvidia to sell its H200 AI chips to China. The H200 carries more high-bandwidth memory and roughly twice the performance of the restricted H20 model. This could reopen one of Nvidia’s largest global markets.  If approved, the decision suggests a recalibration in Washington as it balances economic competitiveness with national security priorities. This shift will influence how global chipmakers plan their long-term China strategies.

Q2. Why is Nvidia expanding deeper into Taiwan at the same time?
While US export rules evolve, Nvidia is accelerating its physical presence in Taiwan. The Taipei City government has cleared land-use contracts in the Beitou Shilin Technology Park for Nvidia’s new headquarters. Construction could start in 2026. The facility will serve as an R&D and coordination hub, reinforcing why global AI companies continue to anchor mission-critical operations in Taiwan’s manufacturing and engineering ecosystem.

Q3. How are other Asian governments responding to this strategic moment?
Japan is making one of its largest public investments in decades. According to CommonWealth Magazine English Website, Tokyo is adding 6.4 billion USD in funding to Rapidus, pushing total support above 50 billion USD. The goal is to mass-produce 2-nanometer chips by 2027 and move toward 1.4-nanometer nodes. This signals Japan’s intent to re-establish itself as a meaningful advanced-process player and diversify global manufacturing capacity beyond its current concentration.
About the Show