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How a shortage of computer chips could provoke a conflict between the US and China

But Taiwan and its semiconductors are far more important to the US economy than Ukraine – meaning it is likely that the US will be hard-pressed to avoid a conflict involving Taiwan.

Taiwan accounts for half of total production of microchips vital to the operation of mobile phones, consumer electronics, automobiles, military equipment and more. South Korea, the closest competitor, accounts for about 17% of the overall market. But the Taiwanese chip is the smallest and fastest, and its foundry accounts for 92% of the most advanced designs.

“It’s nearly impossible to duplicate Taiwan’s high-end chip manufacturing capabilities with low-end chips,” said Dan Blumenthal, a scholar at the American Enterprise Institute. “It’s just the manufacturing hub of the world.”

Although the United States and Europe are trying to promote semiconductor design and manufacturing in their own countries, they are not capable of mass-producing the most advanced designs that Taiwan Semiconductor Manufacturing Co. Loan, or TSMC, can create.

“If the semiconductor supply chain is compromised in some way by China, then all the things Americans look to in their daily lives, to get to and from work, to call loved ones their own, to do a lot of different things, those things disappear,” Ms. Wasser said.

Other experts say it would be an exaggeration to say that the United States would be dragged into a war over microchips. China will decide what kind of coercive measures against the Taiwanese people based on the perceived threat to their sovereignty and the national backlog, said Bonny Lin of the Center for Strategic and International Studies. expected economy.

“China will not base its Taiwan policy or any decision on the use of force against Taiwan,” Dr. Lin said. “China thinks about the cost of an invasion of Taiwan – there are significant political and military costs. That’s why I don’t think chips will be among the top three elements of the use of military force against Taiwan.”

https://www.nytimes.com/2022/01/26/us/politics/computer-chip-shortage-taiwan.html How a shortage of computer chips could provoke a conflict between the US and China

Fry Electronics Team

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