Impact of Nancy Pelosi, This Taiwanese Company Becomes the Trigger of US & China Tensions

 The world's largest chip maker, Taiwan Semiconductor Manufacturing Co. (TSMC) is now the focus of the world following the visit of a member of the United States House of Representatives (US), Nancy Pelosi to Taipei.


It is understood that the tension between the US and China is closely related to the interests of firms from the island in the global chip supply chain.


In general, semiconductors are an important input in the production of smart phones to cars and refrigerators that have become the focus of the US and China in the recent technological competition.


And the recent semiconductor shortage issue has caused the US to look for new 'sources' in the Asian region to ensure they stay ahead of China.


It indirectly explains the main reason for Pelosi's visit to Taiwan, despite strong opposition and warnings from China, which ended with a meeting with TSMC Chairman Mark Liu.



This also marks the importance of semiconductors to US security and the role TSMC plays in making chips more sophisticated.


Commented Reema Bhattacharya, an Asia researcher at Verisk Maplecroft, Taiwan's never-ending diplomatic situation will remain a source of US-China geopolitical uncertainty.


He added that Pelosi's visit also means that the US cannot do it alone and needs cooperation with Asian companies that dominate advanced chips.


Revealing a little history of TSMC, it is a high-portfolio chip manufacturing firm with Apple and Nvidia among its customers.


With the US still lagging behind in chip manufacturing, firms such as TSMC and South Korea's Samsung Electronics have emerged as the world's leading manufacturers despite relying on equipment from the Uncle Sam country.


Looking at the data, TSMC accounts for 54% of the global foundry* market and Taiwan brings 2/3 of the market further confirming the country's importance in the world semiconductor industry.

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