Taiwan's semiconductor industry has grown significantly in the 21st century, thanks to its production of crucial semiconductors. This success is due to strategic partnerships and comparative advantages in various aspects. Taiwan's competitive edge is shaped by state-driven institutional advantages and firms' fast-follower strategies. The Hsinchu Science and Industrial Park plays a key role in facilitating collaboration and technological transfer. Recent geopolitical tensions have led to global expansion for TSMC. Despite challenges, Taiwan's dominance in semiconductors remains strong and hard to replicate.