Car and mobile companies may be affected by the China-Taiwan conflict.

The decades-old tensions between China and Taiwan have peaked in the past few days. The recent visit of US Speaker Nancy Pelosi to Taiwan has once again stirred up the Sino-Taiwan conflict. China has been on constant alert since the news of Pelosi’s visit and fears of war in the Taiwan Strait are increasing. However, […]
 


Car and mobile companies may be affected by the China-Taiwan conflict.

The decades-old tensions between China and Taiwan have peaked in the past few days. The recent visit of US Speaker Nancy Pelosi to Taiwan has once again stirred up the Sino-Taiwan conflict. China has been on constant alert since the news of Pelosi’s visit and fears of war in the Taiwan Strait are increasing.

However, in the midst of all these developments, another concern is troubling the rest of the world. Many countries of the world are already struggling with chip shortage in the auto industry and smartphone industry. The crisis could worsen if Taiwan’s situation goes unchecked as the small country serves as the world’s factory for semiconductor production.

How the Semiconductor Revolution Happened in Taiwan

Taiwan’s development in the semiconductor sector began in 1985. The government of Taiwan appointed Morris Chang to create a blueprint for the development of the emerging semiconductor industry in the country.

 

Then in 1987, the Taiwanese government, Morris Chang, Chang Chun Moi and Tseng Fan Cheng together established the Taiwan Semiconductor Manufacturing Company (Taiwan Semiconductor Manufacturing Company). It is today the largest semiconductor company in the world. The company’s dominance in the semiconductor sector can also be gauged from the fact that at one point TSMC was meeting 92 per cent of the global market demand. While the participation of South Korean company Samsung was limited to only 8 percent.

Know what semiconductors are used for

Semiconductors are widely used in electronics, computers, smartphones, car sensors, etc. Its production is a complex task and involves not only design companies but also manufacturing companies. In addition the semiconductor industry network also includes companies that supply materials and machinery to Lee by supplying technology.

TSMC mainly focuses on manufacturing. Besides Samsung, only a handful of global computing companies make advanced 5-nanometer chips, including TSMC. China lags far behind Taiwan in the semiconductor industry.

World giants depend on Taiwan

Taiwan’s semiconductor industry was greatly affected during the Corona period. However, Taiwan’s dominance in the semiconductor industry has remained stagnant. Taiwanese companies contributed more than 60 percent of the semiconductor industry’s total global revenue in 2020, according to data from a Taipei-based research firm. TSMC contributed the most. TSMC is still the world’s largest semiconductor company and giants like Apple, Qualcomm, Nvidia, Microsoft, Sony, Asus, Yamaha, Panasonic have ten clients.