Experts say subsidies can't buy semiconductor competitiveness

At this year's SEMICON Taiwan, experts from the Hoover Institution, corporate boards, and European industrial frontlines voiced skepticism toward subsidy-driven semiconductor strategies, signaling a shift from capital-intensive to technology-driven competition. The technical ripple effects suggest that over-reliance on subsidies undermines innovation incentives, particularly in advanced nodes and materials, leading to technological stagnation. Compliance risks are escalating as policy uncertainties force companies to reassess operational costs and supply chain resilience in key regions like Taiwan and Hong Kong. In response, global players may accelerate production shifts to Southeast Asia, reshaping regional manufacturing dynamics. Over the next 12–24 months, policy focus will increasingly center on ‘technological sovereignty’ rather than scale, prompting investors to scrutinize subsidy ROI and elevate technical differentiation as the core competitive advantage.