China-Taiwan Tension: If the war broke out between China-Taiwan, chip manufacturing will stop, this will affect the smartphone market

Posted on 5th Aug 2022 03:46 pm by rohit kumar

There is a dispute between China and America on the issue of Taiwan. Relations between the two countries worsened after US Lower House Speaker Nancy Pelosi visited Taiwan. China is trying to threaten Taiwan in every way possible. Chinese aircraft have started appearing in Taiwan's Air Defense Zone. On the other hand, Taiwan is also not ready to listen to China. He does not want to break his friendship with America under pressure from China.

 

However, this tension that started between China, Taiwan, and America is not at all right for the world's tech market. The reason for this is Taiwan. Which is dominated by its expertise in the tech market. Taiwan is a major contributor to the technology and semiconductor market. Taiwan makes 90 percent of the world's modern semiconductors. Last year, Taiwan only exported semiconductors worth $118 billion.

 

Taiwan makes chips for big tech companies

 

Taiwanese company TSMC (Taiwan Semiconductor Manufacturing Company) makes chips for the world's leading tech companies. These include companies like Apple, AMD, Nvidia, and ARM.

 

The tech market will be affected if war breaks out

 

These chips are used in smartphones, cars, laptops, and other electronic items. Production of these things is not possible without these chips. In such a situation, the tension between China and Taiwan is not at all good for the semiconductor market there. If China and Taiwan get involved, it will have a direct impact on the countries of America and Europe. Due to this, the problem of supply shortfall will arise all over the world.

 

Also Read: Dollar Index: The biggest one-day fall in the rupee in the current financial year, increased pressure on the domestic currency

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