Taiwan manufactures roughly 50 percent of all the world's semiconductors.
Taiwan Semiconductor Manufacturing Co. is the world's largest chip foundry and it's Apple's main producer of chips. Politicians in the U.S. and Europe have discussed the urgent need to boost or build their own chip industry to reduce the reliance on TSMC's production.by Singapore's DBS Bank last year, Dan Wang, a technology analyst at research firm Gavekal, outlined the world's great reliance on Taiwanese semiconductors.
The present heightened 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, recently passed a $52 billion funding bill, which will help Intel Corporation and also TSMC boost their manufacturing footprint in America.It goes without saying that the horror of war would far outweigh problems associated with the chip shortage if China were to invade Taiwan. TSMC chairman Dr.
Taiwan's chip industry gives it economic leverage at a time of increased tension between the U.S. and China. Some experts have argued that this fact will prevent China from escalating tensions any further, as the country knows Taiwan's importance to the world — and the retaliation that would likely follow an invasion. Russia's recent invasion of Ukraine provides recent proof that the consensus — and indeed Western intelligence — is not always correct on these matters.
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