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Author: Amber Lin

U.S.-China AI War: From Chip Blockades to Technological Sovereignty

Since 2017, the U.S. and China—two global tech superpowers—have intensified their rivalry through tariffs, export controls, and market restrictions. From semiconductors to AI, every domain has become a battleground. Today, artificial intelligence has emerged as the latest flashpoint in this escalating technological conflict. The rapid rise of Chinese AI company DeepSeek has once again stirred heated debate within the U.S. over "chip export restrictions. As AI advances, this economic and geopolitical conflict continues to expand, prompting countries around the world to adjust their strategies to secure technological dominance.

But the key question is this: Will Sovereign AI become the ultimate determinant of national power? How can Taiwan protect itself in the face of this global rivalry？

What is “Sovereign AI”?

Sovereign AI refers to a nation's ability to independently develop and control AI technologies—including data collection, model training, algorithm design, and system deployment—without relying on foreign technologies. The core value of sovereign AI is about safeguarding data sovereignty, securing critical infrastructure, and ensuring autonomous information flow to enhance technological competitiveness and national security.

This is not just a race for innovation—it is a high-stakes strategic decision with deep political and economic implications. As AI technology becomes closely tied to national security, defense, and economic power, sovereign AI is no longer optional—it’s essential.

Sovereign AI Strategies: Diverging Paths of the U.S. and China

United States: Tech Hegemony and Global Alliances

The U.S. possesses vast data resources and the world's most powerful computing infrastructure. By shaping international standards and leveraging alliances, it maintains a commanding technological lead. Leading AI companies such as OpenAI, Google DeepMind, Meta, and NVIDIA continuously drive innovation, while AI chips (NVIDIA, AMD) and cloud services (AWS, Azure, Google Cloud) form a comprehensive AI ecosystem.

Key strategic moves include:

• The CHIPS and Science Act, which funds semiconductor and AI R&D to strengthen technological autonomy.
• The Department of Defense and DARPA promote AI applications in national security and defense.
• Cooperation with allies such as Japan, the EU, and Taiwan to co-develop AI standards, forming a technological alliance.

In essence, the U.S. seeks to consolidate AI leadership through global tech hegemony and allied containment strategies.

China: Indigenous Innovation and Market Leverage

China, on the other hand, accelerates its Sovereign AI agenda through state-driven policies, massive data reserves, a complete industrial chain, and a vast domestic application base. With its New Generation Artificial Intelligence Development Plan, China aims for technological breakthroughs, leveraging its 1.4 billion population to generate the data necessary for rapid AI deployment in e-commerce, finance, smart cities, and more.

China’s approach includes:

• Developing indigenous AI chips (e.g., Huawei Ascend, Cambricon) and domestic cloud platforms (e.g., Alibaba Cloud, Baidu AI Cloud).
• Building homegrown AI foundation models (e.g., DeepSeek, ERNIE Bot) to reduce dependency on U.S. technologies.
• Promoting AI exports through the Belt and Road Initiative to expand global influence.

Its strategy centers on technological self-reliance and large-scale application, allowing it to push forward with AI development despite U.S. sanctions and restrictions.

Taiwan’s Role: A Strategic Hub in a Global Tech Showdown

Taiwan is not only the center of the global semiconductor industry but also a vital node in the AI chip supply chain. As the U.S.-China tech rivalry intensifies, Taiwan’s role must go beyond that of a mere “manufacturer.” It must determine how to preserve its own technological sovereignty and long-term competitiveness in this new era of technological cold war.

Taiwan in the Chip War

As the U.S. tightens AI chip export controls on China, Taiwan finds itself at the heart of the global chip war. TSMC, the world’s most advanced semiconductor manufacturer, leads with its 3nm process technology and supplies AI chips to NVIDIA, AMD, and Apple. However, under pressure from the U.S., TSMC is barred from supplying high-end chips to China, while China is racing to advance its domestic semiconductor capabilities to reduce reliance on both Taiwan and the U.S.

Caught in this dual conflict—semiconductors and AI—Taiwan must identify its strategic positioning: not just as part of the global supply chain, but as an independent and influential AI power.

Taiwan’s Choice: From Supply Chain Participant to Tech Leader

While Taiwan possesses a solid foundation in hardware, becoming an AI powerhouse requires more than chip manufacturing. It must further expand AI research, software applications, and ecosystem development. Going forward, Taiwan can adopt a dual-track strategy of hardware and software by:

• Enhancing AI chip capabilities,
• Developing indigenous AI models,
• Scaling industry-specific AI applications, and
• Strengthening talent cultivation and international collaboration.

This is not only an industrial transformation but a strategic national decision: Will Taiwan become a core player in the global AI ecosystem—or remain a link in someone else’s supply chain? This is the defining challenge and opportunity Taiwan must confront.

Conclusion: The Era of Sovereign AI Has Arrived

Global AI competition has entered the era of Sovereign AI. The U.S. and China are pursuing divergent strategies to secure technological leadership. Taiwan, positioned between these two powers, holds critical technological advantages—but also faces significant challenges.Are we ready to upgrade from a tech supplier to an AI nation? If so, what must our next move be?

This global competition has only just begun, and Taiwan’s choices will determine its place in the AI world of tomorrow.

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📌Disclaimer

The content of this article is intended for general informational purposes only and reflects current observations and analyses of global developments in Sovereign AI and technology competition. It does not represent any official government stance or policy recommendation. Some information is derived from public sources and media reports, which may change over time in terms of accuracy or relevance. This article does not contain any commercial promotion, political position, or confidential data. Readers are encouraged to use discretion and consult additional sources when making related decisions.