A China-Taiwan conflict could lead to a catastrophic semiconductor shortage in the world – Interesting Engineering

Pelosi is expected to spend the night in Taiwan’s capital, Taipei, on Tuesday, August 2. She had been warned not to do so by officials from China, who claim sovereignty over the self-ruled island.

While the loss of life would clearly be the worst consequence if conflict were to break out, the heightened tensions also highlight the world’s incredible reliance on Taiwan for semiconductors. It’s an issue that’s especially prescient given the ongoing global impact of Russia’s invasion of Ukraine — such as an impending gas crisis in Germany due to Russia’s squeeze on gas supplies.

The world’s reliance on Taiwan’s semiconductors

The effects of the global chip shortage last year, highlighted the world economy’s reliance on Taiwan. The semiconductor shortage had massive knock-on effects for the auto industry, for example, forcing many large firms to halt production.