HardwareUS Commerce Secretary says if China seized TSMC it would be ‘absolutely devastating’ to the US economy, as it buys 92% of its cutting-edge chips from the Taiwanese manufacturerWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
HardwareUS Commerce Secretary says if China seized TSMC it would be ‘absolutely devastating’ to the US economy, as it buys 92% of its cutting-edge chips from the Taiwanese manufacturerWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
(Image credit: House Appropriations Comittee)
TSMC’s position as the world’s largest chip manufacturer puts it in an enviable position in many ways, not least that the entire world is dependent on its output of today’s best computer chips, and it reapshuge financial rewardsas a result.
However, nowhere is that dominance more keenly felt than in the United States, as US Commerce Secretary Gina Raimondo ponders what might happen should it fall into antagonistic hands.
When asked about the impact of a Chinese invasion of Taiwan and the subsequent seizure of TSMC, Raimondo said it would be “absolutely devastating” to the American economy (viaReuters). Adding that, “right now, the United States buys 92% of its leading edge chips from TSMC in Taiwan”.
The CHIPS Act aims to boost US-based chip making for both commercial and strategic reasons, as the country aims to break its reliance on imported silicon.
“Because this is such a sophisticated manufacturing facility, it depends on real-time connection with the outside world, with Europe, with Japan, with US, from materials to chemicals to spare parts to engineering software and diagnosis.”
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Regardless, tensions between China and Taiwan remain high. Taiwan’s military has recently made statements in regards to the inauguration of Taiwanese President-elect Lai Ching-te later this month, stating that it wasprepared for any moves China might make during this period.
Your next upgrade(Image credit: Future)Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.
Your next upgrade
(Image credit: Future)Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.
(Image credit: Future)
Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.
Whether an invasion of Taiwan would lead to control of one of its most highly valued assets or simply shut it down may well be up for debate, but given the level of dependency the US currently has regarding TSMC’s output, it would likely cause a gigantic shift within the chip making industry no matter the outcome.
These warnings, in combination with vast amounts of funding to bring chip manufacturing into US territory, suggest the possibility is viewed as a major concern for the US government.
Whether this is simply a continuation of the debate surrounding US economic dependency on foreign chip suppliers, or reinforcing of the need to cover its bases for potential world events, the US seems determined to bring large-scale chip manufacturing within its borders as soon as it possibly can.
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