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Significance
TSMC has a market share of more than 50% in chip manufacturing, and makes the vast majority of cutting-edge chips. Securing chip supply is now an issue of national and economic security for the United States, China and other major countries, putting Taiwan's dominance into question.
Impacts
Chip shortages will not be solved until next year; all aspects of manufacturing will be affected.
Most products only need lower-end chips and Chinese producers are likely to satisfy this demand by producing higher volumes.
Companies will explore silicon alternatives and shift to cloud computing, where connecting devices can run on slower chips.
Competition will intensify for talent necessary to run chip fabrication plants.
Keywords:
Taiwan,
AP,
China,
EU,
South Korea,
United States,
international relations,
computers,
manufacturing,
technology,
telecommunications,
Semiconductors
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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