According to Ken Griffin, founder of Citadel LLC, the United States of America will fall into a depression if china invades Taiwan. Recent statements and actions of the government of the people’s Republic of China had triggered concerns that the red giant will soon invade Taiwan which is home to TSMC, the largest computer chip manufacturer in the world.
Ken Griffin told in an interview with Bloomberg News that the US would enter an “immediate great depression” if China invades Taiwan and cuts off access to its semiconductor industry.
According to him, the United States currently does not have any chip production facilities which can substitute the number of chips produced and supplied by TSMC to the North American country. America is dependent upon its Taiwanese counterparts for highly advanced chips.
The Chinese invasion of Taiwan and Beijing’s control of the chip manufacturing facilities of TSMC will result in US Gross Domestic Product falling by 5 to 10 percent which will be catastrophic.
As Chinese President Xi Jinping was granted one more term by the Chinese communist party, the probability of a Chinese invasion of Taiwan has increased in an unprecedented manner. Xi Jinping has repeatedly said over the past year that Taiwan is an integral part of China and that reunification will happen soon.
Various countries around the globe have begun legal and procedural work to set up semiconductor manufacturing facilities on their soil. The United States recently passed the CHIPS and Science Act which will boost domestic research and manufacture of chips and Semiconductors. The law will give industry access to more than 250 billion dollars as government financial support.
Despite concerns regarding a Chinese invasion, some business groups in the United States continue to pump billions of dollars into Taiwan’s Semiconductor Manufacturing Company. A few days ago, Berkshire Hathaway owned by Warren Buffett disclosed that it has purchased a stake in TSMC for 4 billion dollars. The information became public through a filing done by Berkshire Hathaway in US Securities and Exchange Commission.
Taiwan Semiconductor Manufacturing company famously known as TSMC is one of the largest suppliers of computer chips in the world. The company claims more than 95 percent of high-end chip production.
Semiconductor chips which are a highly significant part of electronic equipment are hard and costly to produce. Highly advanced chip manufacturing facilities similar to the ones which are owned by TSMC will need machinery and infrastructure worth billions of dollars.
TSMC is the largest supplier of computer chips for various multinational tech companies based in the United States such as Apple and Qualcomm.