China-Taiwan conflict can cause lack of disaster semiconductors in the world
The US Navy has mobilized four Taiwan Eastern Warships as Chairman of the US Representative Council Nancy Pelosi to the country. According to Reuters, China had previously warned that his military would not “sit still with” if the pelSi visited Taiwan.
PelSi is expected to spend the night in the capital of Taiwan, Taipei, on Tuesday, August 2. He has been warned not to do so by officials from China, who claimed the sovereignty of the island that was strengthened by himself.
While the loss of life will clearly be the worst consequence if the conflict breaks, the increase in tension also highlights the world’s extraordinary dependence on Taiwan for semiconductors. This is a very prescient problem considering the ongoing global impact from the Russian invasion of Ukraine – such as the gas crisis that will come in Germany due to Russian extortion in gas supply.
World dependence on the Taiwan semiconductor
The effect of last year’s global chip shortages highlighting the dependence of the world economy in Taiwan. Semiconductor deficiencies have a large-scale knock-on effect for the car industry, for example, forcing many large companies to stop production.
Taiwan Semiconductor Manufacturing Co. (TSMC) is the largest chip casting in the world and Apple’s main chip manufacturer. Politicians in the US and Europe have discussed urgent needs to improve or build their own chip industry to reduce dependence on TSMC production.
In a podcast by Singapore’s DBS Bank last year, and Wang, a technology analyst at the Givekal research company, described the world’s great dependence on the Taiwan semiconductor. “TSMC, if you only see market share, I believe to produce about 50 percent of all semiconductors in the world,” Wang said. “And I think it still reduces how important it is, because these are some of the most sophisticated chips out there.”
The current risk of conflict has encouraged Western governments to spend billions of dollars to improve their domestic chip manufacturing capabilities. The U.S. Congress, for example, has recently passed the $ 52 billion funding bill, which will help Intel Corporation and TSMC also increase their manufacturing traces in America.
War will be a ‘losing and defeating’ situation for all parties
It is not necessary to say that the horror of war will be far greater than problems associated with chips if China attacks Taiwan. Chairperson of TSMC Dr. Mark Liu has talked about this effect, while also highlighting the role of such results can be played for the global economy. In a new interview with CNN, Dr. Liu showed that “war can only create problems on three sides … all sides. We need to prepare the worst, but we must expect the best.” This will be a losing and defeated situation for all parties, he added.
The Taiwan chip industry has an economic influence during the increase in tensions between the US and China. Some experts argue that this fact will prevent China to increase further tension, as the State of Taiwan is known to the world – and retaliation that is likely to follow the invasion. The new Russian invasion of Ukraine provided new evidence that consensus – and indeed Western intelligence – is not always true in this regard.
