Taiwan chip giant warns on supply chain impact of China’s invasion

by WorldTribune Staff, August 1, 2022

The modern world would have trouble functioning without the Taiwan Semiconductor Manufacturing Company (TSMC), one of the main suppliers of the world’s most advanced microchips.

TSMC chips are present in everything from smartphones to cars to missiles.

During the ongoing global supply chain crisis, TSMC’s factories in Taiwan are running at full capacity.

Related: The Taiwan prize: China lusts after island nation’s global semiconductor powerhouse, September 9, 2021

TSMC chairman Mark Liu warned that the company would be effectively shut down if China were to invade the island nation.

“If you take a military force or invasion, you will render TSMC factory not operable,” Liu told CNN. “These are such sophisticated manufacturing facilities. It depends on the real-time connection with the outside world, with Europe, with Japan, with the U.S.”

Meanwhile, several Taiwan media outlets reported on Monday that U.S. House Speaker Nancy Pelosi will visit Taiwan on Tuesday, citing unidentified sources.

China has warned that its military would never “sit idly by” if Pelosi were to visit Taiwan.

TSMC is a giant among giants:

• It is the primary manufacturer of the world’s most advanced computer chips; its technology and expertise power virtually every smartphone, computer, server, network interface and radio.

• It is the primary contractor for Apple, AMD, Broadcom, Qualcomm and countless other companies.

• Moreover, it is the primary innovator within the manufacturing landscape; its state-of-the-art transistor is 5 nanometers, with plans to move to 3 nanometers in the next two years. Intel, TMSC’s primary competitor, is only now moving away from its 14-nanometer process to 7-nm.

“From materials to chemicals and spare parts, to engineering software diagnosis, and it’s everyone’s effort to make this factory operable,” Liu said.

Communist China’s sabre-rattling over Taiwan has intensified under supreme leader Xi Jinping.

Beijing considers self-ruled Taiwan its territory — to be seized one day, by force if necessary.

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