World News

Pelosi Visits Taiwan: Automotive Implications

TL:DR — China thinks of Taiwan as Chinese territory, not a neighbor. Taiwan has never agreed. The US has historically been on the side of making new allies as opposed to maintaining old rivalries. Also, there are a lot of semiconductor chips on the table.
No items found.
Pelosi Visits Taiwan: Automotive Implications

In the movies, the bad guy always gets its most sinister burst of energy just before its inevitable defeat. Recent news from Taiwan may display the same story arc in the chip shortage as news of chip supplies stabilizing is interrupted by reports of impending shortages. 

Let's not waste time. Taiwan island accounts for 92% of advanced semiconductor material manufacturing and nearly 63% of the global chip-making market share. 

Tension. US Speaker of the House Nancy Pelosi recently visited the island, which has upset China. In a series of statements and intimidation tactics, China has made it clear that Taiwan buddying up with the US would be addressed

Already here. This manufacturing crisis, both in and beyond automotive, is not an IF or even a WHEN but a reality. China is the largest importer of Taiwanese exports. The source of 90% of sand Taiwan needs to continue producing semiconductors. The Chinese government recently halted all fruit and fish imports from Taiwan and banned sand exports. 

Coming soon? US and Taiwanese officials believe China is preparing for an invasion of Taiwan. Which for fans of healthy global economies, human rights, or just, you know, peace in general, is pretty rough news.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.