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The Impact of Semiconductor Supply Chain Failures
The global supply chain for semiconductors is fragile, with TSMC being a single point of failure. Any issue with TSMC has ripple effects on the entire world's supply. This was evident during COVID when companies faced cancellations, backlog, and increased prices for iPhones. Geopolitical tensions, like China potentially invading Taiwan, further highlight the risks. Meanwhile, SMIC is China's counterpart to TSMC, with questions about its scalability and cost-effectiveness in producing high-quality smartphones.