TSMC Chairman: "If China Invades Taiwan, It Will Destroy the World Order Beyond Semiconductors"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Liu Deyin, chairman of Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), emphasized that if China invades Taiwan, not only will TSMC's factories become inoperable, but it will also cause tremendous economic chaos in both countries and destroy the global order beyond semiconductors.

In an interview with CNN on the 1st (local time), Chairman Liu stated, "The biggest concern in the event of a Chinese invasion of Taiwan may not be China itself." This remark came amid escalating tensions between the U.S. and China ahead of U.S. House Speaker Nancy Pelosi, the third highest-ranking U.S. official, visiting Taiwan.

Chairman Liu pointed out that if China attacks Taiwan, there will be no winner in the war, and the shock will go beyond semiconductors to collapse the global order and completely change the geopolitical environment. He also explained that production disruptions at TSMC would cause enormous economic chaos on both sides, including China, leading to a sudden disappearance of advanced semiconductors.

He particularly emphasized that if there is an invasion or military attack, TSMC's factories will become inoperable, meaning no one can control TSMC by force. This is due to the extreme sophistication of TSMC's factories, which require real-time connections with global partners for raw materials, components, and software. He added that if TSMC's production is halted due to an invasion, China, which depends on TSMC for 10% of its semiconductors, will inevitably face economic turmoil.

Furthermore, he said that the cross-strait relationship between China and Taiwan maintains an anti-war stance, unlike the relationship between Russia and Ukraine. Chairman Liu expressed that there is something to learn from the fact that all parties involved, including Russia, Ukraine, and Western countries, are seen as losers, and said, "We must apply this lesson to Taiwan."

This content was produced with the assistance of AI translation services.