National Intelligence Director Avril Haynes said that semiconductor production in Taiwan could stop if China takes military action against the island. He said this at a hearing on the Senate Armed Services Committee of the US Congress, reports TASS.
Haynes emphasized that the semiconductors of Taiwan’s largest microchip manufacturer TSMC (Taiwan Semiconductor Manufacturing Company) are used in almost all categories of electronic devices in the world, and a possible conflict may cause the company to stop production.
According to the U.S. Director of National Intelligence, this will have a global financial impact that could be anywhere from $600 billion to $1 trillion a year in the first few years. Also, according to Haynes, the “occupation of Taiwan” and the blocking of production will negatively affect the US GDP.
Former Senator JD Vance expression The view that US officials should make sure they can help Taipei should China decide to “take over” Taiwan by force. In his opinion, otherwise, China’s success would be a bitter blow to the American economy.
The issue of Taiwan’s status is one of the most painful for Beijing. Although most of the world’s states adhere to the “one China” policy, Taiwan or the Republic of China has been a de facto independent state since the war ended in 1949. Beijing views Taiwan as an integral part of the PRC and criticizes unauthorized contacts with Taipei.