Nvidia CEO Jensen Huang says a forgotten 1950s European alliance secretly secured Taiwan’s chip empire — decades later, an island hardly bigger than Maryland dominates 90% of the advanced chip market

Philips helped Taiwan begin its decades-long technology transformation
Li Kwoh-ting pursued foreign expertise to build Taiwan’s domestic electronics industry
TSMC manufactures advanced chips, while ASML builds equipment used in production
Nvidia CEO Jensen Huang has recently discussed how Taiwan’s semiconductor leadership emerged through decades of industrial partnerships, government planning and manufacturing expertise. During a recent conversation with Lex Fridman, Huang discussed how European technology relationships helped establish capabilities that later supported Taiwan’s electronics industry. The island now manufactures more than 90% of the world’s most advanced semiconductors, giving its relatively small territory enormous importance to global technology supply chains. Philips helped establish Taiwan’s electronics foundations
The story dates back to the 1950s, when Taiwanese economic planner Li Kwoh-ting pursued foreign partnerships to develop domestic manufacturing technology. His efforts included attracting Dutch electronics manufacturer Philips, whose involvement helped introduce industrial knowledge and production capabilities into Taiwan’s developing electronics sector. Philips subsequently became part of the historical background behind companies that helped shape semiconductor manufacturing and equipment development. Taiwan Semiconductor Manufacturing Company (TSMC) eventually became central to advanced chip production, while Dutch equipment supplier ASML emerged as a leading manufacturer of lithography systems. These businesses occupy different positions within semiconductor supply chains, with TSMC fabricating integrated circuits and ASML supplying machinery used during chip production. Their historical connections to Philips help explain how international industrial relationships contributed to Taiwan’s technological development. However, their subsequent success involved different corporate histories, investments and technological advances rather than one partnership determining the industry’s eventual direction…