Taiwan Remains a Big Geopolitical Risk in 2022

Contact Your Elected Officials
The Epoch Times Header

Chinaโ€™s top diplomat recently said Taiwan is a โ€œwandererโ€ that will eventually โ€œcome homeโ€ to China. Such rhetoric by the Chinese Communist Party (CCP) officials as well as increased Chinese military aircraft incursions near Taiwan in recent months have spiked a new wave of fears and media speculation that a Chinese invasion of the island may not be far away.

Some media commentators believe that the tension in Taiwan Strait stands as one of the worldโ€™s biggest geopolitical risks in 2022. China claims sovereignty over Taiwan and in the past two years has stepped up threats to take control of the island.

Such a move would inflict economic pain on many countries as Taiwan is a crucial hub for the global semiconductor supply chain, according to experts. A Chinese military takeover would cause severe supply shocks across many industries that heavily rely on chips made in Taiwan.

Taiwanese companies, both large and small, account for about 65 percent of global sales of outsourced chips. Taiwan Semiconductor Manufacturing Company (TSMC), the crown jewel of the island, alone generates 56 percent of the global revenues.

โ€œThe situation is similar in some ways to the worldโ€™s past reliance on Middle Eastern oil, with any instability on the island threatening to echo across industries,โ€ says Keith Krach, former undersecretary of state who played a crucial role in the warming of relations with Taipei under the Trump administration.

TSMC ranks as one of the worldโ€™s most valuable companies, with a market capitalization of nearly $600 billion.

โ€œTo put it in perspective GDP of Taiwan is around $750 billion. That certainly makes the China-Taiwan tensions more combustible,โ€ Krach noted.

Apple is TSMCโ€™s biggest customer. Other notable companies that depend on TSMC include AMD, Qualcomm, NVIDIA, and Intel.

While the worldโ€™s major chipmakers race to produce the smallest chips possible; only TSMC and Korea-based Samsung can produce the cutting-edge standard, which is five nanometers. TSMC recently announced that it would start producing the next-generation 3-nanometer chips in the second half of this year.

China, by contrast, is sitting at the lower end of the semiconductor value chain. It only holds 5 percent of the market share in global sales and relies heavily on foreign suppliers for advanced chips.

By Emel Akan

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Remember Epsteinโ€™s โ€œLittle Black Booksโ€?

Image of Bill Clinton getting a massage from Jeffrey...

On the Major Leagueโ€™s periphery: A major trip through the minors

For Nick Dunn, the trek through the minors is a trifecta of physical, mental, and organizational hurdles filled with politics, roster volatility, and injuries.

Private Citizens are Now Looking into Epstein Client List

Most Americans have never felt so betrayed and confused by a president and his admin as they are by the Trump admin over the Epstein client list issue.

Peace In Ukraine Wonโ€™t End The Westโ€™s Hybrid War On Russia

The Westโ€™s Hybrid War on Russia to follow peace in Ukraine is inevitable due to neoconservatives and liberal-globalists in its decision-making ecosystem.

Epstein Case Closed?

The DOJ and FBI announced on Sunday evening of the July 4th holiday weekend that Jeffry Epstein had no client list and didnโ€™t kill himself in prison.

Trump Visits Central Texas, Epicenter of Catastrophic Flood That Killed More Than 120

President Trump landed in Central Texas for first-hand look at damage from devastating flood claiming the lives of more than 120 people statewide.

Federal Judge Blocks Trumpโ€™s Birthright Citizenship Order After Supreme Court Ruling

Judge barred Trump admin from enforcing EO limiting birthright citizenship, after Supreme Court restricted judges from issuing nationwide injunctions.

California Might Stop Making Necessary Debt Payments for 2 Years

California State Legislature met the budget submission deadline and it was signed by the governor, but they still need to cut $12 billion in spending.

MP Materials Secures Rare Earths Deal With DOD, Shares Surge 50 Percent

MP Materials Corp. announced a public-private partnership with the DOD to build out rare earth magnet supply chain and reduce dependency on China.

Trump Says US Has Struck Deal With NATO to Supply Weapons to Ukraine

President Donald Trump said on July 10 that he has struck a new deal with NATO under which the United States will supply weapons to Ukraine

RFK Jr. Bans Illegal Immigrants From Government-Funded Programs

HHS Sec. Robert F. Kennedy Jr. is rescinding a 1998 interpretation of a law that allowed illegal immigrants to access certain government-funded programs.

Rubio Set to Visit Malaysia for ASEAN Meetings Amid Tariff Tensions

A delegation including U.S. Sec. of State Marco Rubio will travel to Kuala Lumpur, Malaysia, for series of high-profile meetings between July 11 and 12.

US Will Collect More Than $300 Billion in Tariff Revenues This Year, Treasury Secretary Says

U.S. is on track to potentially raise โ€œwell over $300 billionโ€ in tariff income by end of the year, Treasury Sec. Scott Bessent said during WH Cabinet meeting.
spot_img

Related Articles