Between a Chip and a Hard Place: The Economics of Security and Sovereignty in Taiwan

In this episode of The Pie, host Tess Vigeland interviews Chang-Tai Hsieh, an economics professor at the University of Chicago, about the geopolitical and economic implications of the Trump administration's policies on Taiwan, particularly focusing on Taiwan Semiconductor (TSMC). The discussion covers the complex history between China and Taiwan, the economic relationship between the two, and the potential impact of the U.S.-China trade war on Taiwan. Hsieh expresses concerns about Taiwan's security in light of the Ukraine situation and analyzes the implications of TSMC's investments in the U.S., including the potential economic effects on both Taiwan and the U.S. He also touches upon the role of TSMC in the AI revolution and the potential consequences if Taiwan becomes less critical in the semiconductor industry.