The Looming Taiwan Chip Disaster That Silicon Valley Has Long Ignored
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by Tripp MickleFebruary 24, 2026
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The Looming Taiwan Chip Disaster That Silicon Valley Has Long Ignored highlights a critical vulnerability in the global tech industry. If China were to invade Taiwan and disrupt its semiconductor exports, which account for 90% of the world’s high-end chips, the U.S. economy and global tech sector would face catastrophic consequences. Federal officials have repeatedly warned Silicon Valley about this threat, urging companies like Apple, AMD, and Qualcomm to reduce their reliance on Taiwanese chip manufacturing. Despite efforts by past administrations, including financial incentives and tariffs, the industry has remained dependent on Taiwan’s production capabilities.
For years, U.S. leaders have tried to convince tech giants to diversify their supply chains. President Biden offered billions in grants to boost domestic chip production, while President Trump threatened tariffs to achieve similar goals. However, these measures have had little impact, leaving the industry vulnerable to disruptions. Recent Chinese military exercises near Taiwan have only heightened concerns about a potential blockade or invasion, which could cripple global chip supplies and send shockwaves through the worldwide economy.
Taiwan’s role in semiconductor manufacturing is unparalleled, with high-end chips used in smartphones, laptops, and AI data centers primarily produced on the island. U.S. officials, including Treasury Secretary Scott Bess
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Originally published on NYT Homepage on 2/24/2026