08/02/2022, 21.06
TAIWAN – CHINA
Send to a friend

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.

Send to a friend
Printable version
CLOSE X
See also
For its own 'well-being', China won’t invade Taiwan, says TSMC founder
11/10/2022 13:23
Pope talks about the Middle East, the Holy Land and the food crisis with Bush
13/06/2008
Washington says no to Taipei's independence, wages war with Beijing over microchips
08/07/2021 12:52
Energy tops Hu Jintao's agenda in US visit
02/09/2005
Dress rehearsal for a military blockade is China’s response to Pelosi's visit to Taiwan
03/08/2022 21:13


Newsletter

Subscribe to Asia News updates or change your preferences

Subscribe now
“L’Asia: ecco il nostro comune compito per il terzo millennio!” - Giovanni Paolo II, da “Alzatevi, andiamo”