ABSTRACT
Introduction Since its inception, the semiconductor industry has often been viewed as a strategic sector, analogous in many ways to the steam engine of the fi rst industrial revolution. As William J. Spencer, chairman emeritus of International SEMATECH, put it, “It was a foundation for both economy and security.” 3 This chapter examines the relevance of the semiconductor industry to national power and security on the premise that both economic and defense elements are essential to the making of national power and security. The chapter thus lays the foundation for our subsequent analysis of the globalization of semiconductor production activities and its impact on US-China-Taiwan security relations. This chapter is composed of four sections. The second section traces the major technological evolution of the semiconductor industry providing a basis for our analysis of the semiconductor-security linkage. The third section analyzes the important tie between the semiconductor industry and economic power and security. The fourth section examines the complex linkage between the sector and defense power and security, which revolve around four interrelated arguments. The fi nal section summarizes the major conclusions of the chapter.
