In the upcoming events in Taiwan, the global microchip industry is closely monitoring developments as the island nation holds crucial discussions impacting its legislature and presidency. Over the past decade, Taiwan has become a linchpin in the global supply chain for microchips, particularly in the manufacturing of advanced chips, commanding over 90% of the global production capacity.
However, the geopolitical backdrop adds complexity to Taiwan’s significance. China considers Taiwan a breakaway province, with reunification being a stated goal. Chinese President Xi Jinping emphasized this inevitability in a recent New Year’s address, underscoring the delicate nature of the relationship.
While the immediate impact on the global chip supply is not anticipated, any shifts in Taiwan’s stance may increase tensions in the region. This situation raises questions about the strategies of Western nations in terms of Taiwanese chip investments and efforts by Washington to restrict China’s access to advanced chip technology.
For European companies deeply connected with Taiwan, this underscores the geopolitical risks associated with the profound interdependency. The International Centre for Trade Transparency and Monitoring diligently observes these developments, acknowledging the evolving dynamics in the global trade landscape.
