TSMC says possible Taiwan invasion could bring global chip production to a halt

The company claims that no invading force would be able to continue its operations.

Growing tensions between the United States and China over the fate of Taiwan could jeopardize global chip production. According to TSMC, a possible invasion of the island could result in the total stoppage of its productionas she would not be willing to work for any invading force

In an interview with CNN, the company’s president, Mark Liu, stated that “no one can control TSMC by force”. The executive explained that, due to the complexity of the activities performed by the foundry, no military force would be able to operate it easilyespecially in a war context.

As this is such a sophisticated manufacturing structure, it depends on real-time communication with the outside world, with Europe, with Japan, with the United States, involving everything from materials to chemicals, spare parts, engineering software and diagnosis”, explained Liu.

TSMC has the power to shake up the global electronics industry

A possible stoppage of TSMC’s activities would have the potential to disrupt the functioning of the global electronics industry. Names like apple, OMG, NVIDIA and even the Intel rely on foundry to produce many of their products, and without it, the number of smartphones, GPUs, CPUs and other components available in stores would dwindle considerably.

This would lead to a immediate devaluation of the shares of these companieswhich, ultimately, could generate a snowball capable of causing a worldwide recession. China would also be greatly affected by such a situation, as many of its companies also depend on the smelter to function.

China's Invasion Threat of Taiwan Brings Down TSMC Shares

China’s Invasion Threat of Taiwan Brings Down TSMC Shares
Geopolitical climate between the two countries heats up after invasion threats

The dependence of the world semiconductor industry on TSMC is recognized by governments of many countries that are taking initiatives to change the situation. This week, the US Congress passed the Chips and Science Act, which is expected to become law on August 9 and has the objective of offering economic incentives to companies that implement manufacturing and research plants of components within its territory.


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Source: PC Gamer

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