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⚔️ What is the danger of a new war for Taiwan?
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🚀 The scandalous visit of the speaker of the US House of Representatives can be considered a political feat, but the main goal of the aggravation of the situation with China is economic.
Taiwan's «gold chip» is semiconductors − technologies and production of «smart iron» for modern technology.
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Today, TSMC (NYSE: TSM) controls about 90% of the world's semiconductor and microchip production.
Taiwan Semiconductor Manufacturing depends on the stability of the production of Apple, Qualcomm, Nvidia, AMD, Intel, Broadcom and Huawei.
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The Taiwan Strait is the main route to the West for cargo ships from China, Japan, and South Korea. Political control over
Taiwan gives China not only access to advanced technology but also the ability to disrupt the supply of products and raw materials, such as oil, to Japan and South Korea.
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By losing access to Asian semiconductors, the US economy is at serious risk. To compete with China, the US Senate passed the Chip and Science Act (CHIP-plus) to stimulate national semiconductor production. Only $52 billion for financing, but the first effect can be expected no earlier than 2025. So there is no way to quarrel with
Taiwan.
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Today the threat of military conflict is serious. China has already suspended imports of some categories of food from
Taiwan, warned of the closure of the zone for air travel, and began large-scale military exercises in the waters around the island.
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The dollar has already received additional demand due to the flight to safer assets. TSMC's technologically dependent stocks are a little nervous, but the bulk of the speculators will come into play next week. It's not worth the risk yet - we are waiting for a detailed assessment of the results of the visit by the United States.
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Profits to y’all!