Semiconductor tensions chip away at cross-Strait relations

The escalating US–China technology rivalry and global chip shortage make Taiwan’s role as a leading global supplier of semiconductors strategically and economically important to both powers. COVID-19 lockdowns have already disrupted global semiconductor supply. Since global semiconductor production capacity is highly concentrated in Asia, including in Taiwan, South Korea and China, a cross-Strait military conflict will crimp the global production of semiconductors. A cross-Strait military conflict would be a lose-lose situation for the warring parties and the world. Given the high stakes, leaders in the United States and China should maintain continuous dialogue to communicate their interests as well as differences. The United States should refrain from acts that would provoke Beijing’s suspicion of US support for Taiwanese independence.