Taiwanese chip companies could halt production if Chinese troops show up
With Taiwan accounting for 68% of the semiconductor market, it’s no wonder the US is looking to bring manufacturing closer to home and away from China’s prying eyes.
So while the CHIPS Act provides funding and investment to build semiconductor factories on US soil, it’s probably a good idea to have a backup solution to prevent China from hijacking the production lines if they decide to invade Taiwan.
To mitigate this, both Dutch company ASML and Taiwan Semiconductor Manufacturing Company (TSMC) have reportedly installed fail-safes that can be activated remotely to halt chip production, a new Bloomberg report has claimed.
Turn off the chip machine
Following the election of pro-independence President Lai Ching-te, China has stepped up its threats against the island nation, which China considers part of its territory. The increase in hostile rhetoric prompted US officials to express concerns about the security of semiconductor production on the island, with both ASML and TSMC stating that they have the ability to remotely disable the machines in the event of an invasion.
Semiconductors are used in a wide range of products, such as GPUs used for AI training and high-tech military hardware. The US recently imposed an embargo on China to prevent exports of the most high-tech chips from reaching the country, which could be used for military hardware. However, it was recently discovered that some companies were circumventing the ban.
The US has invested heavily in chip production and in the defense of Taiwan, in efforts to deter China from launching any form of military intervention. However, the ultimate goal is to secure chip production on American soil to prevent Chinese espionage and sabotage. In an effort to discourage China’s efforts, Taiwanese President Lai Ching-te announced he wanted to transition the island away from chip production and focus on AI.
“We need to adapt AI to industry and increase the pace of AI innovation and applications. We must also adapt industry to AI and use AI’s computing power to strengthen our nation, our military, our workforce, and our economy,” the president said (via The register).