Yes, it is. The unfortunate reality is that western societies care more about TSMC than Taiwan, and they’re hedging their bets this way.

The world won’t allow a dependence on a single geopolitically threatened entity in the long run, so either they defuse that risk themselves or risk a competitor filling that role. This move is better for TSMC itself.

Who would protect Taiwan anymore? I have my doubts that any prior defense agreement would be upheld today.

No. To get to Taiwan, Mainland Taiwan first has to go through China, the ocean, and Taiwan. They’ll be fine without anyone else’s help.

America doesn't defend taiwan for its semiconductors - it's all american IP anyways. They defend it for the same reason they defend japan and Phillipines - to control the pacific "frontier" these three countries form before guam. Typically against China, but they would do the same nonetheless.

But why should the world depend on a single country or entity? Everything should be diversified.

Yes.

But it will happen one way or another. Taiwan's Sovereignty is completely depending on one single country, the US. It's not like that Taiwan can just say no if the US demands more diversified chip production.

Disagree. Making the world less centralized to TSMC chips makes less incentive to invade at the near future. There is no strategic upside to do it right now. If nothing else, to me it seems china is a strategic mover, and will not sacrifice anything for no strategic value.

Seems likely that Takaichi has given Taiwan a Japanese security guarantee. [1] This may be a quid pro quo.

[1] https://www.youtube.com/shorts/p-4nFgs9fRE

Germany squandered so much money on nonsense, when they could have simply driven the few kilometers over to Eindhoven and bought an ASML machine for "Silicon Saxony". Sure, it would have taken years and years and serious commitment by the government and private sector to make that a successful move. But instead of putting in the hard work with a clear vision for the future, we mostly spend our time whining and wailing. It's a shame.

ASML and its mostly European suppliers is still the key chokepoint that prevents highend semiconductor fabrication from moving to China.

Have you ever heard of Tibet?