Any Chinese Attack On Taiwan Poses Greater Threat To Global Trade Flows Than Ukraine War As It Will Cause Huge Semiconductor Shortage: Taiwanese Official

Any potential Chinese military attack on Taiwan would have a greater impact on global trade flows than the Ukraine war, a senior Taiwanese Minister John Deng warned on Tuesday (Jun 15).

Deng, who is also Taiwan’s top trade negotiator, said that a Chinese military invasion will lead to a shortage of semiconductors,

The ongoing Russia-Ukraine war has triggered commodity price hikes and food export bans.

In case China decides to launch a full-scale attack on Taiwan, the potential disruptions could be worse, Deng said, citing the world’s dependence on Taiwan for chips used in electric vehicles and mobile phones.

“There would be a worldwide shortage of supply,” Deng said.

Taiwan dominates the world's semiconductor manufacturing industry – controlling 48 per cent of the foundry market and 61 per cent of the world's capacity to build at 16nm or better. Taiwanese semiconductor exports were worth $118 billion in 2021