What Happens If China Invades Taiwan?

China has made no secret of its desire to “unify” Taiwan with the Chinese mainland, even if it has to do so with force. If China were to invade Taiwan, the global semiconductor supply chain could be severely disrupted, with far-reaching consequences for the global economy, technology industries, and geopolitical stability. Taiwan’s semiconductor industry, particularly Taiwan Semiconductor Manufacturing Company (TSMC), is critical in producing advanced computer chips essential for everything from smartphones and computers to cars, military equipment, and AI systems. Here’s what might happen to this supply and the potential consequences:

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Disruption of Semiconductor Production:

• Immediate Halt in Production: An invasion could lead to an immediate halt in semiconductor production in Taiwan. Military conflict, damage to infrastructure, and the exodus of skilled workers would make it difficult, if not impossible, for companies like TSMC to continue operations. Even if production facilities remained intact, the instability and uncertainty could lead to a manufacturing…