Although Nancy Pelosi’s trip to Taiwan yesterday created a seismic shift in international relations, the world has begun to pay attention to the dire situation in Asia and the potential for a global shortage of semiconductors.
Nancy Pelosi, Speaker of the United States House of Representatives visited Taiwan yesterday. The visit was closely followed online by more than 300,000. People also watched the flight via FlightRadar24. Beijing sees this visit as a signal that the United States opposes the “one China” policy and that relations between the two countries have fallen to an all-time low.
A conflict in Asia over Taiwan could damage international relations and most importantly cause a global shortage of semiconductors. This would cause the technology market to be more paralysed than it has been in the past two years because of the COVID-19 epidemic. The smartphone market is currently in freefall, sales of Sony’s PS5 have been disappointing, and graphics cards are just beginning to be sold at attractive prices.
TSMC warns about the dangers of war between China, Taiwan
Chairman of Taiwan Semiconductor Manufacturing Company ( TSMC), Mark Liu, has warned that if China invades Taiwan, the economies on both sides will be in chaos. In fact, Liu stated that China could invade Taiwan and the chip factory would cease to exist if it relies on global supply chain.
Liu stated that “no one can control TSMC with force.” The TSMC factory will be rendered useless if you use military force or invade it. He says that the TSMC factory is a state of the art manufacturing facility and relies on constant communication with the outside world. This includes the United States, Europe, Japan, and Japan for materials, chemicals and parts. He said that there would be no winners in a conflict between China, Taiwan, and the West, just as in any other war.
This scenario could have serious repercussions beyond the semiconductor industry and lead to “destruction” of the rules-based global order. Over 60% of all world’s semiconductors were produced in Taiwan last year. Liu urged all sides to seek ways to avoid war to ensure that the “motor of world economic growth” can continue to run. China wouldn’t want to destabilize TSMC as it is dependent on its founder. The company claims that China accounts for 10% of its activities. According to the president, TSMC works only with the Chinese consumer market and not with the military. It is hoped that the region’s geopolitical situation will improve.
The release of the next smartphone could be delayed by a conflict between China Taiwan and Taiwan
You will understand that many countries, including China would find their most important components no longer available if TSMC was shut down. This would cause a global shortage of chips, which could delay or cancel several smartphone releases.
Among these are smartphones that required components from TSMC. This is especially true for the Xiaomi 13 Ultra, the Galaxy S23, and the Xiaomi 13 Ultra, which will be available in France in 2023.
Qualcomm may have to give Samsung the manufacturing of the chip in case of war. However, the consumer might not like this decision. The Samsung burn caused high-end 2021 Android smartphones with a Snapdragon 8 Generation 1 processor to heat up quite a bit. However, the US is n