The possibility of a Chinese invasion of Taiwan is an idea not ruled out in Taipei. At the end of July, the Taiwanese militia carried out exercises to rehearse their response to attacks by the Chinese army; however, a situation of this magnitude would negatively impact the global technology industry, specifically the semiconductor industry.
During a meeting, Mark Liu, president of Taiwan Semiconductor Manufacturing Company (TSMC), spoke of the consequences that the military operation would have on his industry. If China were to invade Taiwan, he said, the world’s most advanced chip factory “would not be operational” as it relies on global supply chains.
TSMC is the leading company in the semiconductor industry, with more than 50% of the global chip casting market, and has significant relationships with US companies such as Qualcomm and Apple, for which it manufactures the A and M series of chips. , found on iPhones as well as your latest computers and tablets.
“If there is an invasion, the TSMC factory will not work. Because this is such a sophisticated manufacturing facility, it relies on real-time connection to the outside world, to Europe, to Japan, to the United States, from materials to chemicals to spare parts to engineering and diagnostic software.” Liu.
Likewise, the executive compared a possible conflict in his country with what is happening between Russia and Ukraine, because although both conflicts are different, the global economic impact would be similar, in addition to the fact that his company also sells chips to Chinese companies.
“War does not bring winners, everyone has losers,” Liu said. “We Taiwanese have chosen to be governed by a democratic system. We want to choose our way of life and we believe that chip manufacturing is a key sector in the economy. Still, if China were to invade, semiconductors would not be our main concern. It would be the fact that this event would destroy the world order.”
The comments came amid growing tension between China and Taiwan after US House Speaker Nancy Pelosi visited Taiwan on Tuesday and raised global alerts.
On the same day, the Chinese Foreign Minister said that this visit affects the political foundations between China and the US, in addition to seriously damaging peace and stability in the Taiwan Strait, something that could also have a negative effect on the world of the technology.
For the United States, the semiconductor industry is a key sector. Last week, legislators approved the Law of Chips and Science to reserve billions of dollars in incentives for those who build their factories in their territory. One of the companies that has invested the most in this sector is Intel.
However, TSMC is also making efforts to expand its reach worldwide and an example of this is that a few months ago it announced the investment of 12,000 million dollars to build a new factory in Arizona that would be added to the one they already have in Washington. .