after visiting Nancy PelosiSpeaker of the House of Representatives of the United States, Taiwan, China initiated a series military training close to the island nation in retaliation for Pelosi’s attitude. During the MP’s visit to Taiwan Mark LiuCEO TSMScommented that the war in Taiwan would leave chip manufacturers inactive. The exercises raised fears of a possible invasion of Taiwan (on the island of Formosa), as Russia and Belarus also conducted “training” actions before the start of the Russian war against Ukraine.

Potential Taiwan Invasion Will Trigger New Chip Crisis

In a rare interview Mark Liu presented a scenario that would lead to a new crisis chip shortage — or expand it, depending on your point of view. According to Liu, if the military took control of the factories TSMS, they will not work. The director of the company explained that this will greatly affect the supply chain of the plants, as they depend on real-time communication (both virtual and physical) with suppliers around the world for material inventory control, diagnostic software and various other services.

Because China buys 10% of the chips produced TSMS, since they were all used in the consumer market and not for military purposes, it was believed that the status quo between the two countries would prevent an invasion of the island of Formosa. But the visit of Mr. Nancy Pelosi – connected with the war of Russia against Ukraine – cause tension in the world. China regarded the visit of a high-ranking representative of the US government as an insult to the Chinese authorities. A new war in Taiwan will have the same serious consequences for the world economy as the blockade of grain imports in Ukraine.

The world is still reeling from the effects of the pandemic on electronics manufacturing. Increase home Office (and various factors) caused chip shortage leading to higher prices for electronics, shortages of equipment, and even the shutdown of car factories. The war in Taiwan will repeat the scenario – just at a time when the pandemic is losing its intensity, and the scenario is trending towards lower prices and availability of electronics.

crisis in taiwan

Taiwan, an island nation, is considered a rebellious province by China, as it was founded by the loser of the Civil War. Only thirteen UN member states recognize Taiwan as a true representative of China. In the 1970s the resolution UN acknowledged mainland China as a true representative of China, leading Taiwan UN observer status and removal from his seat on the Security Council.

visit Pelosi (Democratic Party) Taiwan, the first US politician since 1997, was seen as an insult by China. USA does not recognize Taiwan like China, but to supply military equipment to the country. Behind the scenes, it is reported that the Biden administration tried to convince congresswomen to cancel the visit, which is considered a political ploy to attract votes in US regional elections, and drew praise from the opponent from members of the Republican Party.

Phones with Snapdragon 8 Gen 2 processor should start arriving in November
The device should be released a few days after the announcement of the chipset

Source: ExtremeTech

…..

Thinking about buying goods online? Discover the Save the Connected World extension for Google Chrome. It’s free and offers you price comparisons at major stores and coupons so you can always buy at the best price. Download now.