China and Taiwan Conflict Could Lead to the Global Semiconductor Industry Fails

The world watches Russia’s invasion of Ukraine closely. Now, the conflict between China and Taiwan rises. US officials fear that China could similarly invade Taiwan under President Xi Jinping’s “one China” regime. The nation’s leader claimed that Taiwan, a “renegade province”, would once again become part of China, either peacefully or by force. On the other hand, Taiwan’s President Tsai Ing-wen said that Taiwan will remain autonomous. The officials also fear that China and Taiwan Conflict Could Lead to the Global Semiconductor Industry Failing.

China and Taiwan Conflict Could Lead to the Global Semiconductor Industry Fails

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For those who don’t know, Taiwan produces more than 92% of the world’s advanced computer chips, which are configured for use in smartphones, computers, cars and military equipment. Both the US and China are dependent on Taiwan corporations, the largest of which is Taiwan Semiconductor Manufacturing Company (TSMC). Samsung Electronics in South Korea, on the other hand, produces the remaining 8% of the global market.

The US is totally dependent on Taiwan for semiconductor research and design. According to the US Department of Commerce, subcontracting chip fabrication reduced the market share in the US from 37% in 1990 to 12% in 2021. Apple, Qualcomm, Nvidia, Google, Amazon, and Microsoft contract the majority or part of semiconductor production. from TSMC and other Taiwan-based companies. TSMC is Apple’s exclusive provider of advanced chips. On the other hand, China holds 9% of the global chip market share by producing low-end computer chips for consumer goods and electronics.

If the conflict continues and China invades Taiwan, it could recruit engineers and steal intellectual property from TMSC and US chipmakers.

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