The next 5 to 10, or 15 years of Taiwan's transition might be very important. China is expected to build up its capabilities to start a war, while some countries, like in Europe, are aiming to be able to manufacture leading-edge processor chips by then to compete with Taiwan's...
https://twitter.com/royngerng/status/1364024145365803012
... semiconductor industry. This means it can no longer be business as usual for Taiwan. There's a need to review whether Taiwan's current economic model and the 5 shortages rhetoric (lack of land, water, power, manpower, and talent) contradicts with its national goals.
The 5 shortages are already irrelevant for the major export companies, which are paying higher salaries for tech talent and where youths flock to them, while their high profits can sustain increases to the costs of land, energy & water. 5 shortages should therefore be downplayed.
With Taiwan's population dwindling and wages too low to attract adequate skilled workers from other developed countries, as well as with the threat from China, each individual in Taiwan becomes increasingly important.
Each Taiwanese and individual in Taiwan therefore plays an important role in defending Taiwan, in being a potential creator for new industry niches for Taiwan, and increasingly every person will be counted on to be high-skilled in their industry due to a lack of manpower.
But this means Taiwan would need to relook its whole social capacity. Taiwan is not a 'normal' country. It needs to be a country that's kept always on its toes & currently, it's not one. Decades of hierarchical work has driven motivation and enthusiasm out of Taiwanese workers.
Using my center as an example, youths and workers do not speak up no matter how unhappy they are, for fear of angering the boss. In times of war, you cannot rely on Taiwanese being completely compliant, they won't have the flexibility to fight off attacks.
To create new industry sectors in Taiwan, decisionmakers have increasingly run out of ideas other than the usual reliance on semiconductor and ICT, and innovation needs to be decentralized to allow workers and youths to explore and come out with new niche areas.
But all these means Taiwan cannot simply follow an economic model other countries are taking. It also means depressing costs for the sake of maintaining current industries no longer work. Major industries do not need cost depression anymore anyway.
Also, it means Taiwan needs to envision a new social and political identity that would allow it to safeguard both its political and economic independence, but this would mean ensuring each Taiwanese are empowered, valued and will partake in a new nation building exercise.
To do so would mean letting go of old ideas, like the 5 shortages. It means empowering youths by strengthening unions, education reforms to allow critical discussions, higher wages to secure motivation, so that together Taiwanese will become committed to the national project.
Taiwan has reached its peak of development with #COVID19 and countries turning to Taiwan for chips. But this should not lull Taiwan into thinking its position is secured. Other countries are developing their chip industry, if not in the next 5, then the next 10 or 20 years.
Yet, Taiwan continues to overly focus on semiconductor. Other countries recognize the potential of AI, IoT and digitalization as well. While Taiwan has the tech talent and leverage currently, it needs to use this opportunity to reinvent itself. Only by investing in citizens, ...
... and innovation from the bottom-up, can Taiwan leverage on its strengths to compete with other developed countries. Taiwan does not want to continue being a contractor to other countries, especially not when they are developing their own local manufacturing expertise.
To maintain a leading edge, Taiwan therefore needs to relook its economic and social model, and to develop an approach that would meet its unique position as an independent country that needs to secure the rights and support of each individual to help safeguard the country.
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