Microchip manufacturing giant warns that a Chinese invasion of Taiwan would stop production

The chairman of TSMC, the world's leading semiconductor manufacturer, warns of potential turmoil as tensions rise over Nancy Pelosi's possible visit to Taipei. Should the operations of the Taiwanese company be blocked, China's most advanced technologies would become useless.

Taipei (AsiaNews) – A Chinese invasion of Taiwan would block the activities of Taiwan Semiconductor Manufacturing Company Ltd (TSMC), the world's leading manufacturer of microchips.

This would create “great economic turmoil" on both sides of the Taiwan Strait, said TSMC chairman Mark Liu speaking to CNN’s Fareed Zakaria on Sunday.

Meanwhile, tensions are rising in the area over a possible visit to Taiwan by US House of Representatives Speaker Nancy Pelosi, this evening and tomorrow.

Beijing insists that it will respond in a “resolute” way to what it considers a violation of its sovereignty; for Communist China, Taiwan is a “rebel” province to be seized, by force if necessary.

In his CNN interview, Liu said that a Chinese attack against the island would be a geopolitical catastrophe. In his view, TSMC cannot be controlled by force.

Given the extreme sophistication of its plants, the company requires real-time connection with partners across the world – the United States, Europe, and Japan above all – on matters ranging from raw materials and chemicals to spare parts and software.

In the first quarter of 2022, TSMC held a 52 per cent share of the global semiconductor foundry market. Sales in China account for 10 per cent of its revenue.

For Liu, this is a great deterrent. In the event of a conflict, stopping TSMC production would deprive China of the most advanced components used in the latest technologies, including those with military applications.

It should be noted that since 2020, semiconductor shortages have created problems for the manufacturing of many goods, such as cars, due to strong demand for high-tech equipment generated by the pandemic.