What does the war between Taiwan and China mean for technology?


The military talks between China and Taiwan are increasing according to House Speaker Nancy Pelosi He visits the country.

Chinese fighter jets flew over the Taiwan Strait ahead of Pelosi’s visit Tuesday morning, Taiwan’s government said. They came with a cyber attack. And China has warned that Pelosi’s visit could have consequences.Terrible resultsHe said.

Pelosi is the highest-ranking US official to visit the island in 25 years. Taiwan is a self-governing democracy, while China is It states that it is part of the state.. And the visit comes as the communist nation sets itself up for military exercises, firing missiles off the coast of Taiwan and sending more aircraft and naval vessels to the island.

While it remains to be seen whether China will invade or simply post, there is no denying Taiwan’s importance in the tech world. The country exports $118 billion last year and produces more than 90% of the world’s top semiconductors. And it’s home. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s most advanced chip factory, whose customers include famous names such as AMD, Apple, Nvidia, ARM and others.

Without those chips, the frustrating delays we experienced in the pandemic years when trying to buy a new car or laptop, or get a new video card or PlayStation, will seem like the halcyon days of yesteryear for consumers. And technological advances in many fields could lead to a virtual halt.

Rarely recently An interview with CNNMark Liu, president of TSMC, said that the invasion would not only affect the economies of Taiwan and China, but also the economies of most Western countries.

“War doesn’t produce winners. Everyone loses,” he said. [inoperable]. As this is a highly sophisticated manufacturing facility, it depends on real-time communication from the outside world, Europe, Japan, the US, from materials to chemicals to spare parts to engineering software and testing.

While Russia’s invasion of Ukraine has certainly had an impact on international trade routes, disrupting gas prices and raising food prices across Europe, Taiwanese officials say the attack on their country by China will hit industries ranging from automobiles to personal electronics. Home entertainment.

John Deng, Taiwan’s top trade negotiator, said: “There will be a global supply shortage he told Reuters. earlier this year.

Taiwan’s military has been conducting its own exercises since last week, as the People’s Republic of China’s military has increased its saber rattling. But the numbers are not on Taiwan’s side. There is China. 412,000 land force workers Ships in the East and South; Taiwan has 88,000. The island nation is vastly outnumbered by fighter jets, submarines, frigates and destroyers – and has no aircraft carriers.

If there is a collision, the shipping lines (among the busiest in the world) will not be safe to pass. In the first seven months of the year. That’s less than half of the world’s 5,400 container ships. It used the Taiwan Strait to transport not only semiconductors and mobile phones, but also clothing and appliances. 88% of large cargo ships use the waterway.

And if the US goes to war with China over Taiwan? A Research by the Rand Corporation This could reduce US gross domestic product by between 5% and 10%, he said.

And TSMC’s president says a raid would put his factory out of business.If China were to somehow take over the facility and restart it, it would give the country a huge global technological advantage and create a nightmare for homeland security officials and others. .

This was indeed the reason why the House of Representatives approved it. CHIPS and science law last week. The bill President Biden signed into law Tuesday afternoon would establish billions of dollars in incentives for chipmakers to build factories in the United States.

Intel will be one Main usersBut because the company is working on a $12 billion manufacturing plant in Arizona, TSMC could benefit.





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