Chip War: The Fight for the World's Most Critical Technology

by Chris Miller

After initially accusing Mark Shepherd of being an imperialist, Minister Li quickly changed his tune. He realized a relationship with Texas Instruments could transform Taiwan’s economy, building industry and transferring technological know-how. Electronics assembly, meanwhile, would catalyze other investments, helping Taiwan produce more higher-value goods. As Americans grew skeptical of military commitments in Asia, Taiwan desperately needed to diversify its connections with the United States. Americans who weren’t interested in defending Taiwan might be willing to defend Texas Instruments. The more semiconductor plants on the island, and the more economic ties with the United States, the safer Taiwan would be. In July 1968, having smoothed over relations with the Taiwanese government, TI’s board of directors approved construction of the new facility in Taiwan. By August 1969, this plant was assembling its first devices. By 1980, it had shipped its billionth unit.