The United States has stepped up preparations of an action plan in the event of a Chinese "invasion" of Taiwan, with the main focus put on the island's cutting-edge chip industry, Bloomberg reported on Friday, citing sources
WASHINGTON (Pakistan Point News / Sputnik - 07th October, 2022) The United States has stepped up preparations of an action plan in the event of a Chinese "invasion" of Taiwan, with the main focus put on the island's cutting-edge chip industry, Bloomberg reported on Friday, citing sources.
The contingency planning has intensified after the start of Russia's special military operation in Ukraine, the report said.
According to sources familiar with the discussions in the Biden administration, the question that worries officials in the US and Taiwan is the fate of the island's flagship semiconductor industry.
All scenarios place an increased strategic importance on Taiwan Semiconductor Manufacturing Co. (TSMC); and under the worst-case scenario, the US will consider evacuating the company's highly-skilled engineers, the sources said.
The US National Security Council reportedly estimates that the loss of TSMC could devastate the global economy by more than $1 trillion, roughly twice the value of the entire semiconductor industry's annual global sales.
In August, Biden issued an executive order to implement the $280 billion CHIPS and Science Act of 2022, which includes more than $52 billion in subsidies for US semiconductor manufacturers in an effort to counter China's growing technological clout.
In September, Treasury Secretary Janet Yellen warned that Taiwan is the sole source of advanced semiconductor microchips, which poses a risk to US national security.
