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US warns Silicon Valley of Taiwan chip supply risks amid tensions

US warns Silicon Valley of Taiwan chip supply risks amid tensions

Post by : Shakul

U.S. national security officials have repeatedly warned major technology companies in United States, including Apple, Advanced Micro Devices, and Qualcomm, about the risks of overreliance on Taiwan for high-end semiconductor chips. Taiwan produces roughly 90% of the world’s advanced chips, making it a critical point in the global supply chain.

In confidential briefings, officials highlighted that China has long considered Taiwan a breakaway territory and might attempt to retake it. A blockade or military action could severely disrupt the production of semiconductors and threaten U.S. tech operations.

Over the years, both Presidents Joe Biden and Donald Trump have tried to encourage the U.S. tech industry to reduce dependence on Taiwan. Biden offered billions in grants to support domestic chip production, while Trump threatened tariffs to incentivize reshoring.

Despite these efforts, Silicon Valley companies have remained largely reliant on Taiwan, raising concerns among policymakers that a disruption could paralyze major technology sectors in the United States.

Experts warn that strengthening domestic chip manufacturing and diversifying supply chains is essential to prevent a potential crisis. Taiwan Semiconductor Manufacturing Company (TSMC) has also expanded facilities in the U.S., including a large plant in Phoenix, Arizona, to help mitigate risks.

Feb. 25, 2026 11:29 a.m. 266

#world news #Asia News #UAE

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