Depok, 27 October 2025 — The Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), held a public lecture with Prof. Tain-Jy Chen from the Taipei School of Economics and Political Science, National Tsing Hua University. In the lecture titled “Semiconductor Geopolitics: Taiwan and ASEAN,” Prof. Chen explained how Taiwan’s semiconductor industry dominates the global market while also opening strategic opportunities for ASEAN countries, including Indonesia, to take on a greater role in the global semiconductor supply chain.

The public lecture was opened by the Dean of FIA UI, Prof. Dr. Dra. Retno Kusumastuti Hardjono, M.Si., who expressed FIA UI’s honor in welcoming Prof. Tain-Jy. With his extensive expertise in economics, policy, and technology, he provided valuable insights for lecturers and students, particularly in understanding how global dynamics shape governance and innovation in the region.

“We believe that today’s lecture is strongly connected to these fields and helps us deepen our understanding of how technological and geopolitical changes influence governance and innovation in Southeast Asia,” she added.

After the session was opened by the moderator, Dr. Vishnu Juwono, S.E., MIA., the event continued with Prof. Chen’s presentation. In his lecture, Prof. Chen explained that Taiwan is currently one of the world’s largest centers of the semiconductor industry, with production capacity accounting for more than 21 percent of global output.

Taiwan also leads in the manufacturing of advanced chips, particularly those produced under the 7-nanometer process, and controls around 63 percent of the global market share for advanced chips.

This success is closely linked to the role of Taiwan Semiconductor Manufacturing Company (TSMC), which controls approximately two-thirds of the global foundry market. In addition, Taiwan is a major player in the packaging and assembly sector and ranks second globally in chip design after the United States.

Prof. Chen highlighted that the main strength of Taiwan’s semiconductor industry lies in its complete and integrated ecosystem, spanning research and design through to chip manufacturing and packaging. This advantage is further reinforced by efficient industrial infrastructure, such as the Hsinchu Science Park, which enables close interconnections among companies and supports production processes with very fast component delivery times.

Beyond discussing Taiwan’s industrial strengths, Prof. Chen also emphasized the significant impact of geopolitical dynamics between the United States and China on the global semiconductor landscape. According to him, tensions between the two countries have driven substantial changes in export policies and global investment directions.

The United States has tightened exports of high-tech equipment to China, including to TSMC (Taiwan Semiconductor Manufacturing Company) facilities in Nanjing, as a strategic move to limit China’s access to advanced chip technology. In response, China is seeking to strengthen its medium-technology chip production and build a more self-reliant domestic supply chain.

These geopolitical shifts have encouraged global semiconductor companies to diversify their production and investment locations. TSMC, for example, has built manufacturing facilities in the United States, Japan, and Germany, while companies such as UMC and Vanguard have expanded their investments in Singapore. ASEAN countries, particularly Malaysia and Vietnam, are also increasingly emerging as centers for chip packaging and testing, supported by Taiwanese and U.S. companies.

Prof. Chen emphasized that packaging, testing, and chip design are the most realistic sectors for development in ASEAN countries, as they require lower capital investment and carry lower market risks compared to establishing high-technology chip fabrication plants.

In this context, Indonesia has significant potential to become an important player due to its strong human resources. With more than 300,000 STEM (science, technology, engineering, and mathematics) graduates each year, Indonesia has the potential to become a major provider of skilled talent for the semiconductor industry in Asia.

This public lecture forms part of FIA UI’s efforts to broaden students’ perspectives on strategic global issues related to public policy, international economics, and technology. Through this activity, FIA UI is committed to equipping students with a deep understanding of the interconnections between economic policy, technological innovation, and geopolitical dynamics that shape future development.