US EditionSecret Report Warned Taiwan Chip Loss Would Rival Great Depression
US plans to increase domestic chip production by 50% by 2030 with $200 billion investment, aiming to cut reliance on Taiwan amid escalating geopolitical tensions.
- In 2022, the Semiconductor Industry Association commissioned a confidential report warning cutting Taiwan's chip supply would cause the largest economic crisis since the Great Depression, projecting an 11% U.S. output drop and a 16% fall for China.
- Classified warnings from military and intelligence leaders indicated Chinese military live-fire drills and White House briefings prompted Washington to reassess Taiwan's semiconductor vulnerability.
- With US$50 billion in subsidies, the U.S. government pursued domestic fabs using tariffs, equity deals and pressure—Intel gave a 10% government stake for $8.9 billion, and TSMC pledged over $50 billion for Arizona plants.
- Advanced packaging remains anchored in Taiwan, so wafers from U.S. fabs often return there for finishing despite new domestic foundries and commitments.
- Because U.S. chips cost over 25% more, many firms resisted relocating, prioritizing margins despite Bloomberg Economics warning global losses could exceed $10 trillion with Taiwan underpinning $10 trillion of GDP.
15 Articles
15 Articles
The $10 Trillion Fight: Modeling a US-China War Over Taiwan
The island at the center of the artificial intelligence boom—and increasingly the global economy—lies on geological and geopolitical fault lines. Taiwan, the producer of most of the world’s advanced semiconductors, faces intensifying pressure from mainland China and growing uncertainty about US support. War doesn’t appear imminent. If it were to erupt, though, the shock to the global economy would be seismic.
Federal authorities have come, years ago, attempting to destabilize the Silicon Valley of their independence from Taiwan, an island democracy about the size of Maryland that produces 90% of the world's most advanced computer chips. In Brazil: Camera approves a bill that provides incentives for the data sector New acquisition: Nvidia invests US$ 2 b in CoreWeave to speed up the creation of data centers dedicated to IA In sealed meetings held in W…
Washington tells Silicon Valley the Taiwan chip risk is no longer theoretical
The warnings, reinforced by recent Chinese live-fire drills around Taiwan and a classified industry report projecting an economic shock on the scale of the Great Depression if Taiwan's chip supply is cut, have turned a once-abstract geopolitical worry into a direct threat to US growth. Yet for years, major US...Read Entire Article
Apple, Nvidia, Qualcomm and AMD have long ignored a 'China warning' from US government that threatens to 'cripple' American economy if comes true, claims report - The Times of India
Tech News News: A report by the New York Times has said that US government officials have for years warned major American tech companies – that included Apple, Nvidia.
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