The conflict in Taiwan will cause a shock to the global semiconductor industry

The Economist Intelligence unit, affiliated to The “Economist” Group, said in its latest report that a conflict in Taiwan will cause a shock to the global semiconductor industry, and Japan, South Korea and the Philippines will be the most affected.

The analytical unit, which warned of destruction to the economy of Asia, in the event of a conflict across the Taiwan Strait, added that it assumes a hypothetical full-fledged conflict scenario, which includes direct military participation by Taiwan, China and America, with an escalation at the initiative of China and the participation of the United States in the activation of its security alliances, according to the newspaper “Taipei Times” today.

The report added that the risk of a direct Chinese military attack on Taiwan was “completely excluded”.

However, the report stated that Asian economies have many weaknesses, related to Taiwan, especially in terms of advanced chip manufacturing.

A previous report by the unit said in March that Taiwan accounts for 60 percent of the world’s semiconductors and 90 percent of advanced chips.

The report released this week said that in the best case, the outbreak of conflict will disrupt air and sea ties, necessary for the import of materials necessary for chip manufacturing and export of chips.

“In the worst case, a war will lead to the complete destruction of chip manufacturing facilities in Taiwan,”he added.