Significance of Losing Access to Taiwan-Made Chips

Losing access to chips made in Taiwan could have more severe consequences than the COVID-19 pandemic or the Great Recession of 2009. Estimates suggest that if the United States were to lose access to these chips, approximately 8% of its GDP would be at risk. This highlights the critical role Taiwan plays in the global semiconductor industry, as it is the leading producer of high-end semiconductors. Efforts to diversify supply chains and bring semiconductor production back to the United States are underway, but challenges such as labor costs and regulatory hurdles need to be addressed.