If strains between China and Taiwan continue to worsen, the People’s Republic has a trump card: threatening to cut off the island’s exports, which include products from pivotal chipmaker TSMC https://www.cnn.com/videos/tv/2022/07/31/exp-gps-0731-mark-liu-taiwan-semiconductors.cnn, formally known as Taiwan Semiconductor Manufacturing. Pelosi’s trip earlier this week was the first time a U.S. House speaker has gone to the region since 1997. That makes it less likely that the People’s Republic will follow through. U.S. companies are just coming out of a global chip shortage spurred by the pandemic, which already shut down production at auto factories across the globe. Separately, TSMC Chair Mark Liu told CNN that the company’s advanced chip factory would become inoperable if China invaded Taiwan, according to an interview aired on July 31.

Source: CNN August 05, 2022 18:06 UTC