If China invaded Taiwan there would be major impacts across the global high-tech supply chain “in weeks”, according to the chief executive of one of the most important companies involved in making vital semiconductor chips.
Speaking exclusively to Sky News, Doris Hsu, CEO of Taiwan-based GlobalWafers, also said customers have “a lot of concerns” about China’s intentions in Taiwan and it’s one of the reasons the firm had opted to locate its new plant in Texas.
Increased tension across the Taiwan Strait has led to concerns that companies will look to protect themselves by withdrawing from the self-governing island that China sees as its own and direct longer-term investments elsewhere.
Taiwan is a vital global player in technological development and manufacturing, particularly semiconductors.
Semiconductors are the vital microchips described as the “brain” in modern electronics; they power everything from planes and appliances to cars and smartphones.
Taiwan manufactures around 90% of the world’s most advanced semiconductors and around 50% of the broader market, much of them made by global leader TSMC.
Any disruption to this would be catastrophic to global supply chains.
GlobalWafers manufactures silicon wafers, one of the crucial parts in semiconductors. It is the world’s third-largest supplier of this component and one of TSMC’s most important suppliers.
“Some of our customers do have quite a lot of concern about the overall security in Taiwan,” says Ms Hsu. “They want us to be more diversified.”
“In 20 years we have never been asked so frequently as we have recently, so many customers saying ‘Hey Doris, what if anything goes wrong? What’s your contingency plan?'”
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