Taiwan Semiconductor Manufacturing Company (TSMC) Warns of Operation Stoppage if China Invades Taiwan

Mark Liu, the Chairman of chipmaking giant Taiwan Semiconductor Manufacturing Company (TSMC), warned that the operations of the business may come to a halt if China decides to invade Taiwan.

In an interview with Fareed Zakaria of Cable News Network (CNN), Liu warned that TSMC’s factories would become “non-operable” in the event of a Chinese invasion of Taiwan.

Liu’s interview occurred as Nancy Pelosi, the speaker of the United States House of Representatives, left for an Asian tour that would include a stop in Taiwan, prompting China to threaten “forceful measures” as a response.

According to Liu, a war between China and Taiwan would have effects far beyond the industry of semiconductors, and will lead to the “destruction of the world’s rules-based order” and “totally change” the geopolitical environment.

Liu, the head of the largest contract chipmaker in the world advised Beijing to exercise caution before taking any action as China contributes to 10 percent of TSMC’s business.

“If they [China] need us, it’s not a bad thing,” said Liu. He emphasized that any disruption of the supply networks will result in economic devastation for both countries.

Liu added that the Ukraine-Russian conflict has resulted in a “lose-lose-lose” situation for the West, Russia, and Ukraine and that lessons should be learned from it.

“War can only create problems on all three sides. We need to prepare for the worst, but we should hope for the best,” said Liu.

Despite ongoing tensions, TSMC recently revealed the specs of its new 2-nanometer node and its 3-nanometer roadmap.

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