we will stop production if china invades taiwan

Warning from the president of TSMC, the world’s leading producer of semiconductors, Meanwhile, tensions are rising over Nancy Pelosi’s possible visit to Taipei. Ceasing the Taiwanese company’s operations would render China’s most advanced technologies unusable.

Taipei () – In the event of a Chinese invasion of Taiwan, the operations of the Taiwan Semiconductor Manufacturing Company Ltd (TSMC), the world’s leading manufacturer of microchips, would be paralyzed. This would create “economic chaos” on both sides of the Taiwan Strait.

The statements come from Mark Liu, the president of TSMC, as tensions rise in the area over Nancy Pelosi’s possible visit to Taipei. The president of the United States House of Representatives would arrive on the island between tonight and tomorrow, local time. Beijing insists that it will respond in a “significant” way to what it considers a violation of its sovereignty: for Communist China, Taiwan is a “rogue” province that must be reconquered, even with the use of weapons.

In an interview with on July 31, Liu stresses that a Chinese attack on the island would cause a geopolitical catastrophe. TSMC cannot be controlled by force, he explained. Given the extreme sophistication of its facilities, the company has to be connected in real time with partners around the world – the United States, Europe and Japan, above all – to secure raw materials, chemicals and spare parts.

TSMC controls about 52% of the global microchip market. Sales to China represent 10% of its income. Liu sees this as an excellent deterrent: In the event of a conflict, suspending Taiwanese chip production would render China’s most advanced technologies, including military ones, unusable.

It must be remembered that since 2020, the shortage of semiconductors – due to the high demand for technological devices generated by the pandemic – has created problems for the production of many goods, such as cars.