After Ukraine war, Taiwan’s chip supremacy raises economic stakes
2 years, 8 months ago

After Ukraine war, Taiwan’s chip supremacy raises economic stakes

Al Jazeera  

Island’s importance to global supply chains is under scrutiny amid predictions of an invasion by China in coming years. Taiwan’s vital importance to global supply chains is especially pressing amid growing speculation that China could try to take the self-ruled island, which Beijing considers a renegade province, by force in the coming years. “So the potential impact on Russia’s economy is very severe if the current sanctions coalition can be maintained.” While supply chain disruptions prompted by COVID – not to mention the ongoing great power competition between the US and China – may cause other countries to reevaluate their dependence on Taiwan, analysts question whether TSMC can be replaced in the foreseeable future. “Most countries are not going to come to Taiwan’s defence against an attack from China on account of Taiwanese firms’ role in the semiconductor supply chain,” he said. Taiwan’s annexation would likely also raise major questions about regional security – manufacturers would “need to question if moving capacity to Korea is that safe anyway”, Fuller said.

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