Amid global concern over military tensions between Taiwan and its big neighbor China. The global economy has become afraid of a military conflict other than the Russian-Ukrainian war, and another crisis that could occur other than the gas crisis in Europe.
The island plays a pivotal role in keeping the world up-to-date with its latest technology, from computers to advanced weapons, thanks to Taiwan Semiconductor Manufacturing Company or TSMC, which is one of the largest in Asia, and manufactures 90 % of the world's most advanced chips.
According to Al Arabiya Net, the company's market value is more than half a trillion dollars, and this company is so important that it is called the Holy Mountain, and its employees are exempted from military service in Taiwan. Taiwan also recently committed $300 million to training programs for the next generation of semiconductor engineers.
With the escalation of military tensions between the capital, Taipei, and Beijing, the fate of the industry has become a global concern. Whoever tried to buy a new car during the past two years can imagine the extent of the problem.
Now people are waiting from 3 to six months to buy a car of a European brand due to disruptions in supply chains, due to the closures of semiconductor factories in Taiwan and America following the outbreak of the Corona pandemic. If China's recent military maneuvers near Taiwan turn into a military conflict, the problem will be exacerbated further, and it will become similar to the Russian gas scene.
Chip supply shortages and concern about China's attempts to gain control of the island have prompted many countries to take steps to reduce their dependence on Taiwan. For example, last week the US Senate approved a $52 billion plan to invest in research, design and manufacture of semiconductors in the United States.
Semiconductor manufacturer SMIC - China's largest chip maker - has also pledged to invest $5 billion in additional capacity this year.
