China has seen US House Speaker Nancy Pelosi's visit to Taiwan as a threat.Taiwan is one of the most important places when it comes to semiconductors all over the world. Taiwan Semiconductor Manufacturing Company, TSMC, is a global leader in semiconductor manufacturing. and make the latest chips for Apple၊ AMD၊ Nvidia၊ Intel and other companies. TSMC can be said to be a treasure of Taiwan, and if TSMC were to die, it would greatly affect the global semiconductor market. To be clear, the outbreak of war in Taiwan could destroy the global semiconductor market.
Mark Liu, the chairman of TSMC, recently spoke with CNN reporter Fareed Zakaria and they discussed the tension between China and the United States. When discussing the possible invasion of Taiwan by China, Chairman Liu said, "Nobody can control TSMC by force," making it clear that if Taiwan were invaded, TSMC would not be able to operate.
TSMC's technology is the world's leading, global supply chain and it is connected to Japan, Europe and the United States. If China invades, these links will be severed and TSMC will not be able to operate. Also, the outbreak of war could damage TSMC's facilities beyond repair, making one of Taiwan's jewels will be useful for China.
While speaking to CNN, Mark Liu said that China is dependent on TSMC and has 10 percent of TSMC's business. TSMC has a purely civil economic relationship with China, and if an invasion occurs, the relationship will be damaged and China's economy will be affected. China buys about 90 percent of its chips from overseas, and this alone could be a blow to China's technology sector.
For this reason, China cannot aggressively invade Taiwan. Protecting Taiwan with Silicon Shield and simply taking over TSMC cannot overcome this problem. TSMC's facilities could be damaged by a Chinese invasion, and because of TSMC's importance alone, the invasion would become a global issue that could not be ignored.
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