lørdag 16. april 2022

Chinese Invasion of Taiwan Could Undermine Global Semiconductor Market

Semiconductors are foundational to modern life, enabling everything from our phones to the energy grid. But increased offshore demand for semiconductors, accelerated by the COVID-19 pandemic, has resulted in a global shortage—affecting virtually every industry. Some predict that the chip shortage will continue into 2023. On top of an already stressed supply chain, Russia's invasion of Ukraine has led to new concerns for the semiconductor industry, both because Ukraine produces over half of the world's supply of neon gas—which is used in the production of chips—and because of the precedent that it sets for a potential Chinese invasion of Taiwan.

The Russia-Ukraine conflict has caused understandable concern among residents of Taiwan that China may attempt a similar invasion. The effects would be felt around the world. A successful invasion of Taiwan would give China almost total control over the world's semiconductor supply, with disastrous results for the U.S. economy and national security.