Flaring tensions between China and Taiwan are reminding companies how important it is to seek a broader range of sources for semiconductors — and to invest in the sector, reports Yahoo Finance.
If tensions persist and move beyond a drill, deliveries of the Taiwan Semiconductor Manufacturing Company (TSMC)’s semiconductors, known as chips, to big-name brands could slow or be halted. TSMC chips power a slew of electronics ranging from iPhones to Lockheed-Martin fighter jets.
According to the report, Taiwan was responsible for 60% of the global revenue in 2020 for the sector and TSMC held 53% of the global foundry market in the third quarter of 2021, Taipei journalist Matthew Fulco wrote in a Macdonald-Laurier Institute publication released in January.
The article added, TSMC, which dwarfs Samsung’s 15% market share with 85% of the market, is of particular importance because it has a “near monopoly” on the most advanced chips — 10 nanometres or smaller — and has mastered producing them with less energy.
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