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US warns: Economic fallout if China takes over Taiwan’s TSMC

Reporter TVBS News Staff
Release time:2024/05/09 14:21
Last update time:2024/05/09 14:21
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US warns of economic fallout if China takes over Taiwan’s TSMC (Shutterstock) US warns: Economic fallout if China takes over Taiwan’s TSMC
US warns of economic fallout if China takes over Taiwan's TSMC (Shutterstock)

TAIPEI (TVBS News) — U.S. Secretary of Commerce Gina Raimondo warned on Wednesday (May 8) that a Chinese invasion and subsequent control over Taiwan Semiconductor Manufacturing Company (台積電, TSMC) would have an "absolutely devastating" impact on the U.S. economy.

Speaking at a U.S. House of Representatives hearing, Raimondo highlighted the critical dependence of the U.S. on Taiwan for its advanced semiconductor needs.

 

Raimondo pointed out that the U.S. purchases 92% of its advanced chips from TSMC, underscoring the vital role the Taiwanese company plays in the global semiconductor supply chain. Her comments at the hearing echoed her previous statements made during a "60 Minutes" interview with CBS last month, where she boasted about having "the most advanced semiconductors in the world." When asked if "we" included Taiwan, Raimondo affirmed, "You could say that."

The Commerce Secretary's remarks underscore the strategic importance of Taiwan and TSMC in the global economy and national security frameworks. Her stark warning about the catastrophic consequences of losing access to TSMC's advanced semiconductors due to a military conflict with China serves as a sobering reminder of the geopolitical tensions surrounding Taiwan and the semiconductor industry.

As tensions continue to simmer, Raimondo's comments highlight the urgent need for strategies to mitigate the risks associated with the U.S.'s heavy reliance on Taiwanese semiconductors.
 

The situation calls for a careful balancing act between maintaining economic ties and ensuring national security in an increasingly uncertain global landscape.

 

Taiwan Affairs

#semiconductors# TSMC# Taiwan# U.S. economy# Gina Raimondo# China invasion# global supply chain# U.S. reliance on Taiwanese semiconductors# Taiwan semiconductor manufacturing# implications of China-Taiwan conflict on U.S. economy
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