Taiwanese soldiers on a armored vehicle in Taiplei during the National Day Celebration, following Chinese President Xi Jinpings vow to unify Taiwan by peaceful means. Photo: AFP / Ceng Shou Yi / NurPhoto

Countries go to war for many reasons – but to grab semiconductor plants would be a first.

Taiwan is a global hub of semiconductor manufacturing. Some analysts argue a principal reason the People’s Republic of China (PRC) would invade Taiwan would be to seize Taiwan’s semiconductor industry. 

A couple of academics even argue that Taiwan can forestall a Chinese attack by threatening to destroy its semiconductor factories at the first sign of a PLA attack. However, China would be no less keen to seize Taiwan if the islands didn’t have a single semiconductor factory.

From Beijing’s perspective, there’s plenty of “upside” to taking Taiwan by force or by throttling it and bringing it under mainland control. Let’s think it through.

Strategic terrain: Breaking the ‘first island chain’

Taiwan has what real estate agents say matters most: location, location, location. Geography matters.

Taiwan sits in the middle of the so-called First Island Chain that runs from Japan southwards through Taiwan and the Philippines and onwards to Indonesia and Malaysia. United States defense concepts call for defending along the First Island Chain.

Viewed from the Chinese mainland, the First Island Chain is a barrier that blocks easy access to the Pacific Ocean for Chinese naval and air forces. Chinese forces need to pass through a handful of narrow, and easily defended, straits or pass over potentially hostile territory. 

So, if they occupy Taiwan, the People’s Liberation Army (PLA) has a lodgment smack in the middle of the United States’ – and allies – forward defense line that bottles up the Chinese military. 

Control over Taiwan and its airfields and ports would allow the PLA both freedom of movement and an extended range into the Western Pacific, and beyond. 

Additionally, it would give Beijing increased leverage over other countries in the region. Taiwan is a splendid location for interdicting sea lanes through the South China Sea, a region that China claims as its own and through which much of Japan’s trade flows, including vital energy imports. 

It would also make South Korea even more vulnerable. 

By holding Taiwan, the PRC would be in a position to prevent ships from other nations from using the South China Sea. It could even charge administrative fees for the privilege of passing through “its waters.” 

It could also massively expand its Air Defense Identification Zone (ADIZ), giving it leverage over the air as well as the sea lanes. 

Even now China applies pressure on nations with competing claims in the South China Sea. But, with Taiwan under Beijing’s control, those other nations would be able to operate in the South China Sea only with the PRC’s sufferance. 

Sticking it to the Japanese

Japanese Coast Guard Cutters stand watch over the Senkaku/Diaoyu islands. While disputed by China, Japan controls the island chain and has chased away vessels from China and Taiwan that have entered the waters without permission. Photo: WikiCommons

Taiwan’s fall would allow China to teach Japan a lesson – and it is keen to do so. One can see that in action in the East China Sea around Japan’s Senkaku Islands – islands also claimed by China, and Taiwan. 

Since 2012, PRC naval and coast guard ships have gradually increased their presence in the area. Japanese forces have responded to Chinese incursions, but have not initiated a shooting war. 

However, Japanese naval and air forces are increasingly overmatched as Chinese ships and aircraft appear more often, in greater numbers and for longer periods of time. The Japanese are holding on, and are also deploying Ground Self-Defense Force anti-ship missile units and air defense systems to the Nansei Shoto in the Ryukyu Islands to bolster their southern defense line.

The Japanese are also finally showing signs of cooperating with United States forces to defend Japan’s southern territory, but it is late in the day.

With Taiwan in hand, the PRC would have effectively outflanked Japanese defenses in the Nansei Shoto, and will be positioned to dominate the East China Sea and seize Japanese maritime and island territory. 

And once PLA submarines, ships and aircraft start operating regularly east of Japan’s main islands, Japan will also need to defend its eastern approaches for the first time since 1945.

All this will crimp the ability of US forces to operate in the region.

Dominating the Second Island Chain and beyond 

The PRC isn’t only looking east. It’s looking south and southeast as well. 

From Taiwan, with some effort, the PLA can drive a salient into the heart of American “second layer” defenses in the Central Pacific – and even push into the Southwest and South Pacific.

China doesn’t have any military bases or access locations in the region and has only made modest military forays into the area. 

But the PRC has laid the groundwork with 30 years of political warfare, economic and commercial inroads, and a physical presence including scoping the seas and ports via its commercial and fishing fleets.

And, at the same time, greasing the way via elite capture. 

Before too long the PLA will have bases in the region. Chinese military access will provide the PRC with options for pressuring US allies, including Australia. 

Chinese Pacific bases or access locations can threaten US forces and facilities in the region. But PRC interest doesn’t stop in the middle of the Pacific. 

The PLA is also gearing up to operate farther east of Hawaii, off the West Coast of the continental United States, as the PRC assiduously develops ties and shipping routes to the West Coast of Central and South America. 

China’s Liaoning aircraft carrier during a drill in the South China Sea on April 18, 2018. Photo: AFP / Getty Images

Demolishing the American Protective Blanket

Despite the breathtaking PRC military expansion over the last 30 years, it was possible for some in the region – and for many in the United States – to believe the US was still the foremost military power and could defend itself and its friends.

And there was an implicit belief that America would save Taiwan. 

But if Taiwan falls to the PRC, the entire dynamic will be altered. Beijing will have demonstrated that it alone has the power – and the will – to dominate in Asia

Consider what a regional nation will see in their neighborhood after the fall of Taiwan. China’s military will be seemingly everywhere – including backing up China’s huge fishing and maritime militia fleets. It will be intimidating. 

The fall of Taiwan will leave a searing impression on all regional nations, even North Korea: 

  • The vaunted US military couldn’t, or wouldn’t, stop Beijing. 
  • Fear of economic and financial retaliation didn’t stop Beijing. 
  • Even fear of America’s nuclear weapons didn’t stop Beijing. 
  • The United States and its allies couldn’t stop Beijing from taking – by force or bullying – democratic, independent, US-friendly Taiwan and subjugating its 24 million citizens.

And if the Americans couldn’t stop the Chinese, who will or can? 

But maybe the shock of Taiwan falling will concentrate minds and drive nations closer to each other and/or to the United States for self-preservation? Perhaps. 

It is more likely, though, that the concrete and nearby evidence of Chinese power will drive regional countries to cut the best deal they can with China in the hope of being mostly left alone or not being treated too harshly by Beijing. 

Most of Asia will turn “red” and quickly.

Japan and Australia might hold out, but they will be quaking, and the degree of compliance to China will be a constant issue – egged on by well-funded Chinese political warfare. And India might decide it needs new friends. 

Beyond the Indo-Pacific, every other country will take note as well.

Military helicopters carrying large Taiwan flags do flyby rehearsals on October 5 ahead of National Day celebrations amid escalating tensions between Taipei and Beijing. Photo: AFP / Ceng Shou Yi / NurPhoto

So, if taking Taiwan allows China to push the United States out of Asia and knock it off its perch as the world’s leading nation, Xi Jinping might be sorely tempted to pay whatever price is necessary. 

Remember this is a leadership that has proven willing to do things that could seem to American minds like irrational self-inflicted economic wounds if they assess it would benefit their own relative position. Think of what happened to Hong Kong or Jack Ma. 

Given the stakes, semiconductors don’t matter much in the equation.

Grant Newsham is a retired US Marine and a former diplomat and business executive who spent many years in Asia. He is a senior fellow with the Center for Security Policy. Find his articles on JAPAN Forward here. Follow Grant Newsham on Twitter: @NewshamGrant