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> China will be more than happy to sell us chips this is a narrow view of the possible outcomes. a huge amount of our military and intelligence capabilities, a
by CptFribble 4y ago
> China will be more than happy to sell us chips
this is a narrow view of the possible outcomes. a huge amount of our military and intelligence capabilities, as well as much of our advanced manufacturing (i.e. the things that make us relevant on the world stage), completely depend on TSMC's chips. China controlling TSMC could remove the USA from the world stage in a single decade by simply refusing to sell us the best (or any) chips.
Similarly, military and intelligence sources would likely volunteer to stop using TSMC chips immediately since Chinese control could mean those chips are compromised through-and-through.
Basically, Chinese control of Taiwan represents an existential threat to US global power and the US would likely go to the mat over it. Paradoxically though, I think this fact also reduces the likelihood of open conflict over Taiwan, because unlike Putin, Xi does not appear to let his ego drive bad decisions.
The most likely outcome is a new Cold War, with smaller conflicts around the chip industry in Taiwan, most prominently seen at the moment with China's continued expansion into the South China Sea. They cannot risk open conflict over TSMC directly, but they can try to flex their growing naval power over the shipping lanes.
If there will be a conflict over Taiwan, it will likely not happen until the 3nm fab in Arizona is operational in 2026 (planned). We'll likely see a huge shift in the dynamic once we have US chip supply lines secured inside our borders. The paradox will be resolved and Taiwan will be vulnerable to invasion since the US won't need to risk lives and material defending it's chip supply chain, but China will still want to control advanced chips at the level of TSMC's production since while they have made huge strides to catch up over the last several decades, they are still struggling to match TSMCs level of expertise (as we all are).