Reports claim that 60 percent of the world's semiconductors are manufactured in Taiwan and 90 percent of them are top-notch ones
A week back in a media conference, US Secretary of State Antony Blinken has stated that the escalating geopolitical scuffle between China and Taiwan is likely to have an effect on every country on the planet. Between the two nations, the crisis augmented to such a large extent that China carried out a non-stop three day military strike in the island country.
Blinken also mentioned that striked in Taiwan are likely to have several security and fiscal complications in the world, but the most powerful impact will be on the production and growth of semiconductors. Chips are now one of the most essential elements of any developed country because they are the most important components of any electronic device. Taiwan is now the world’s largest producer of semiconductors and therefore, China is very keen to capture the island country through military invasions.
According to a survey by McKinsey & Company, the semiconductor industry is anticipated to increase by one trillion dollars towards the end of 2030 out of which 70 percent of the growth will be spearheaded by automotive, computation and data storage, and wireless. The point to be noted is that semiconductors are very important but their manufacturing process is also very intricate and is very expensive as well.
Reports claim that 60 percent of the world's semiconductors are manufactured in Taiwan and 90 percent of them are top-notch ones. Taiwan’s TSMC, with world’s largest foundry, has around 54 percent share in the international market and its chipset are supplied to global giants such as Qualcomm, Nvidia, and Apple. On the other hand, the EU nation contributes only 9 percent of share and the US has 12 percent of share in this industry.
Taiwan’s dominance of the semiconductor industry for decades is often dubbed by manu analysts as the ‘Silicon Shield’. In an interaction with Euronews, Blinken said, “Fifty per cent of global commercial traffic goes through the Taiwan Strait every day. Seventy percent of the semiconductors that we need for our smartphones, for our dishwashers, for our cars, they're made in Taiwan.”
“If there was some kind of crisis as a result of something that China did, that would have terribly disruptive effects on the global economy, which is why countries around the world look to everyone to behave and act responsibly. I heard this in conversations with many of our NATO allies as well as partners in Asia: there is concern that, were there to be a crisis as a result of China's actions over Taiwan, that would have repercussions for quite literally every country on earth," Blinken further added.
