The soldiers of the silicon supply chain are feeling anxious
In the heart of the semiconductor industry, there is a sense of familiarity with the challenges it faces. During a recent visit to Hsinchu Science Park, the headquarters of Taiwan Semiconductor Manufacturing Company (TSMC), the largest chip producer globally, there was tension in the air as China conducted military exercises near Taiwan. The potential consequences of an invasion or blockade are severe, yet many Taiwanese in the industry remain unfazed. “It’s nothing new,” remarked one seasoned chip executive, reflecting on China’s history of aggression since 1996.
However, semiconductor executives across Taiwan, South Korea, and Japan are more concerned about the economic tactics employed by the US against China. They see sanctions and tariffs as threats to the intricate semiconductor supply chain that spans East Asia, America, and Europe, with Taiwan playing a pivotal role. This supply chain is essential for producing the microchips that power our digital world, blending government support with market forces. The ongoing chip war puts this delicate balance at risk.
2024-05-30 08:09:54
Originally published on www.economist.com