Will China make a move on Taiwan to control the global chip market
Will China make a move on Taiwan to control the global chip market


A battle is brewing in Asia that has very important implications for the future. Martijn Rasser, senior fellow at the Washington-based Think Tank Center for a New American Security, says, “By controlling Taiwan’s semiconductor industry, China would control the global market. They would have access to the most advanced manufacturing capabilities and so on.” is even more valuable than control over the world’s oil. “

China may decide that it is worth invading Taiwan for chip making equipment

Rasser adds, “Whoever controls the design and production of these microchips will set the course for the 21st century.” And China could see such a power worth waging war. Think about what happened to Huawei last year when the US changed its chip export rules.

Rasser adds: “Semiconductors are the ground zero of global technology competition. They are included in everything we need to function as a society.”

Since last May, the US has been demanding that global foundries like TSMC, which use American technology to make chips, must obtain a license before these components are shipped to Huawei. This also includes shipping chips developed by Huawei itself to the company. Since Huawei was unable to buy state-of-the-art semiconductors, the number of phone shipments has dropped sharply (including a year-on-year drop of 70% in the first quarter).

Last month, the outgoing U.S. chief military commander in the Pacific said China could invade Taiwan at some point in the next six years. The Biden administration may have to help defend the US tech industry by sideizing Taiwan in any fight against China. Taiwan Semiconductor Manufacturing Company (TSMC) is the leading contract manufacturer in the chip industry and counts Apple as its largest customer.

Fox News reports that China has been flying jet fighters and long-range bombers near Taiwan in the past few days. When you find that 70% of the world’s semiconductors are made in Taiwan, the importance of this issue becomes clear. The US fears that if China were able to take control of state-of-the-art foundries, it would give the Chinese military the opportunity to make great strides against the rest of the world.
Two weeks ago, the Biden government blacklisted seven companies to prevent TSMC from selling advanced chips to China that could be used to make more advanced weapons for the Chinese military. The country is not far advanced in terms of the chip industry and its largest foundry, SMIC, remains a few process nodes away from the 5nm currently used by TSMC and Samsung.

SMIC and other foundries in China had hoped to purchase the more advanced lithography equipment that would allow them to mark wafers with extremely thin lines. These patterns determine the placement of transistors on these wafers and are critical to making higher performing, more energy efficient chips. While China is having a hard time getting this equipment, Taiwan is not.

A new American security agency’s Rasser Center said, “China has tried to get its hands on the equipment and so far it has not been very successful.” What he says next might alarm you. “So you can easily imagine a scenario where Beijing decides it’s worth the risk and actually invades Taiwan to take control of this important industry.

Senator Tommy Tuberville, R-Alabama, said in a statement: “Taiwan is a serious area of ​​interest not only because of its representation as a people, but also because of the democracy that it represents. The free world should be concerned about its central role, where they play It would be a misconception for China to believe that they can accept Taiwan.

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