More on the Relations Between Asia and the U.S. The fear is that in the event of a conflict, firms won’t get the microchips they need to make phones and drones, set up supercomputers and cellular networks, and even build new weapons. It is also rapidly becoming one of the world’s most dangerous geopolitical flash points. Taiwan is the biggest producer of the world’s most advanced chips. The calculation begins from a basic, and unsettling, reality of the global economy. The Taiwan chip design firm MediaTek recently partnered with Purdue University to open a chip design center. In recent years, Taiwan’s biggest chip maker, Taiwan Semiconductor Manufacturing Company, or TSMC, has pledged to open new factories in the United States and Japan. Taiwan’s biggest trading partners - which include China, the United States, Europe and Japan - have different ideas about the self-ruled island’s political future, yet all share common ground in one desire, to expand their piece of its cutting-edge semiconductor industry.īeginning with Speaker Nancy Pelosi’s visit in early August, a succession of American delegations have kissed the ring of top Taiwan chip executives. TAIPEI, Taiwan - As Chinese warships rehearsed a blockade of Taiwan this month, they simulated a scenario global leaders and policymakers have been busy worrying about: not war, but a grinding halt to the electronic supply chains that make the modern world run.
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