Our previous article explained the importance of the Taiwanese firm TSMC as a critical link in the global semiconductor supply chain. Although it is not the only firm with the ability to manufacture cutting-edge logic chips, TSMC is the only viable choice for chip design companies in many situations, and under normal market conditions is likely to remain so for years to come. Control of TSMC’s foundries in Taiwan might thus appear a decisive factor both in Beijing’s readiness to risk attempting unification through force, and for other states deciding whether to take a strong stance against this.

Would China Invade Taiwan for TSMC? (archived)