Will Taiwan Tensions Derail the Future of Automation?

October 14, 2025

If not this, then what? If Taiwan’s semiconductor dominance falters, the future of automation could face serious turbulence. Over the past decade, the island has become the heart of the global chip industry, with TSMC alone producing most of the world’s most advanced semiconductors. These high-precision chips power everything from robotics and autonomous vehicles to smart factories, AI systems, and countless IoT devices. Without predictable and affordable access, the progress of these technologies could slow down or even grind to a halt.

Taiwan is juggling several risks at once. Political tensions with China are escalating, major economies are working to bring more semiconductor production closer to home, and natural hazards such as earthquakes and typhoons pose ongoing threats. Any of these factors, trade restrictions, export limits, or transport problems, could trigger costly delays or even cause supply chains to collapse. Because industries from manufacturing and healthcare to energy and logistics rely so heavily on these chips, the ripple effects would be global.

Taiwan produces over 90% of the world’s most advanced semiconductors according to The Guardian. That makes it indispensable not just to automation, but to nearly every modern technology. Rising political tensions combined with environmental threats are exposing deep cracks in the global chip supply chain. These challenges go beyond politics alone. A natural disaster hitting Taiwan’s manufacturing hubs, would send shockwaves globally. Businesses can no longer afford to treat supply chain planning as a one-off task. They need flexibility and clear communication both internally and externally.

We are already seeing some attempts to address these risks. The United States has launched the CHIPS and Science Act to support domestic semiconductor manufacturing, while the European Union has introduced its own Chips Act with similar goals. Companies including Intel, Samsung and TSMC are investing heavily in new facilities in the US, Japan and Europe to reduce dependence on a single region. However, building these plants takes years and costs billions, so Taiwan will remain the main production centre for advanced chips for the foreseeable future.

For companies that depend on automation, recent developments are reassuring but they don’t remove the immediate uncertainty. Stakeholders want more from than just updates from governments and chipmakers, they want to know how individual businesses are safeguarding their operations. This is where effective communication becomes essential, ensuring that customers, investors and partners have a clear view of the risks and the response strategies in place.

When companies explain their plans clearly, whether it is diversifying suppliers, building up inventory, or increasing production capacity, it sends a strong message that risks can be managed. People need to hear not only that the risks are understood but also what steps are being taken to deal with them.

PR helps companies show they are thinking ahead rather than waiting for problems to hit. Thought leadership pieces, expert commentary, aligning messaging with government policy, and demonstrating that you are part of global resilience efforts help build legitimacy. When automation firms communicate early, openly, and with substance, they don’t just calm nerves, they signal that they are ready for disruption rather than surprised by it. Because in the world of automation, foresight isn’t optional, it may be the difference between staying on track or getting left behind.