The Strategist

Taiwan: Current situation will have a negative impact on semiconductor market

08/09/2022 - 11:08

According to Taiwan's official ambassador to France Wu Chih-chung, rising tension in the Taiwan Strait could complicate the global semiconductor market. He made this statement on Monday during an appearance on the BFM Business TV channel.

"The production chain for semiconductors is a complicated one; if a dispute impacts manufacture of even one part of this technologically sophisticated product, the system as a whole will cease to operate. This would be a significant issue for the entire world market," Wu Chih-chung stated.

The world's biggest contract maker of wire chips is Taiwan's TSMC.

TSMC CEO Mark Liu and U.S. House Speaker Nancy Pelosi had a meeting while Pelosi was in Taiwan on August 2–3. According to reports, Pelosi and the CEO of TSMC spoke about implementation of a bill on measures to promote semiconductor manufacturers that was recently passed by the US Congress and allots $52 billion dollars to expand their production in the US.