The chip industry crisis
Conflict between Taiwan and China which overlaps with the western countries Especially the United States backing Taiwan. leading to the issuance of measures to obstruct the transportation of goods for the import and export of Taiwan directly affect the economy of Taiwan. especially the technology and chip manufacturing industry.
before going deep into the problem We may need to understand that first. taiwan with chips how are they related
Taiwan is one of the key strategic areas. Both in terms of geopolitics, economics, and relations or conflicts between nations. Because it is an area that has been contested in terms of oversight of the trade economy. One of the key products that will be affected is Semiconductor Manufacturing Industry or as we understand easily as “chips”
Chips are an important export and the backbone of Taiwan’s economy. occupies more than 40% of the total export economy. Most of them are exported to China and Hong Kong. For example, in 2020 Taiwan’s chips are exported to China for about 102,450 million US dollars, and in 2021, 125.9 billion US dollars. meanwhile Taiwan also imports products from China as the number one import product.
So how does the international political situation affect it?
Taiwan is a geopolitical complex in itself. The Chinese government’s attitude and attitude towards Taiwan is the area of concern. and try to stay within the Chinese mandate But for many Western nations, Taiwan is an area free from Chinese domination.
with a different way of thinking that stands as the original contradiction and a new round of tension that is evident Conflict between China and Taiwan May be easily classified into two conflict groups: the conflict between China and Taiwan itself. But it must be noted that the second group is Allies of Taiwan with economic and political stakes especially the United States that backed Taiwan on this conflict again.
No matter how intense the conflict is, such as no direct confrontation It is a tension that China may from time to time block Taiwan’s cargo and logistics systems. It will affect Taiwan’s exports and imports. Which is distributed to markets around the world, such as chips, and the more the conflict multiplies how much. The fear that will follow may be Western sanctions on China. Or a way that has a low chance of happening, but if it happens, it will be very dangerous. It is a full war.
In the case of Apple, Apple has spoken publicly, telling its Taiwanese suppliers to expedite their efforts to ensure that parts shipped from Taiwan to China comply with Chinese customs regulations. to avoid being detained goods and parts This will affect the disruption in the production process.
Taiwan’s semiconductor industry is important to the global economy. Because Taiwan positions itself as a leader in advanced technology. And the 4th Industrial Revolution will use the most advanced semiconductors that Taiwanese companies can design and manufacture. which means Semiconductors are also Taiwan’s defenses at the same time. Because it enhances Taiwan’s important strategic alliance with other countries, especially the United States and Western Europe.”
Controversy continues Academics and international relations experts are still estimating that tensions will not reach the level of trade sanctions or war. But of course, supply chains, especially in the chip manufacturing technology industry, are already starting to suffer. The chip manufacturing industry crisis will not only affect a narrow area. But this conflict has affected the global chip situation.
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refer
Bangkokbiznews, Anusorn Thammajai fears the Chinese-Taiwan-US conflict aggravate the chip shortage crisis, according to https://www.bangkokbiznews.com/business/business_finance/1019570
Thairathplus, China vs Taiwan tensions to economic tensions and chip wars that will intensify, according to https://plus.thairath.co.th/topic/money/101929
SWARAJYA, Explained: The United States 280 dollar billion CHIPs act, Retrieved from https://swarajyamag.com/world/explained-the-united-states-280-billion-chips-and-science-act
Last updated on : September 10, 2022