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TSMC, Apple's Chipmaker, has warned China's invasion of Taiwan would cause everyone to lose

TSMC has warned invasion of Taiwan would cause everyone to lose

August 4, 2022: -If China invaded Taiwan, the most-significant chip factory around the world would be generated “not operable,” TSMC Chair Mark Liu said with CNN this week.

In the undated interview, Liu stated that if China invaded Taiwan, the chipmaker’s plant would not be able to operate as it relies on global supply chains.

“Nobody can control TSMC by force. If you take help from military force or invasion, you will be rendering TSMC factory not operable,” Liu said. “Because this is a sophisticated manufacturing facility, it depends on real-time connection with the outside world from materials to chemicals to spare parts to engineering software and diagnosis.”

TSMC, the world’s most advanced chip manufacturer, makes processors for American companies, including Apple and Qualcomm. It manufactures Apple’s A-series and M-series chips and has over 50% of the world’s semiconductor foundry market.

The remarks were aired as tensions between China and Taiwan have recently escalated as House Speaker Nancy Pelosi visits the island. “The war brings no winners; everybody’s losers,” Liu said.

In the week, the House of Representatives passed the Chips and Science Act, which sets aside billions of dollars in incentives to build chip factories on U.S. soil. President Biden is expected to sign the bill on Tuesday.

Backers of the legislation say national security must secure the supply of efficient and modern chips for U.S. usage if China were to invade or make it more challenging to manufacture chips in Taiwan.

While much of the bill’s incentives will go to American companies like Intel, TSMC is building a $12 billion chip factory in Arizona that could benefit from the subsidies.

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