Given that the United States has consistently sought to sanction China’s chip industry, China’s retaliation against TSMC or Taiwan could hurt Apple.

Apple chipmaker TSMC is under increasing threat from China, a new paper argues, with policy criticizing the Cupertino company over its reliance on a Taiwanese chipmaker.

Given that the United States is now actively seeking sanctions against China’s chip industry Applying export control orders on chip manufacturing equipment is, there is concern that this will increase the possibility of China retaliating against TSMC or Taiwan.

The Chinese government considers this island part of its territory. Taiwan, for its part, technically claims independence from mainland China, but makes no practical moves to assert power. On the other hand, Taiwan has its own constitution, elections, passport, currency and armed forces.

However, China refuses to have diplomatic relations with any country that recognizes Taiwan’s independence, so most Western countries, despite having “representative offices” in Taiwan that are embassies, but in an uncomfortable policy pretend that In fact, it is not.

Read more: Elon Musk’s plan for peace between China and Taiwan

The story of the US embargo on China’s chip industry

The threat of China’s coercive dominance over Taiwan has always existed. However, one of the inhibiting factors has been the US-Taiwan Relations Act. The law created an obligation for the United States to help Taiwan defend itself against Chinese aggression. However, the global reaction to Russia’s invasion of Ukraine signaled to China that while it may have faced economic risks by attacking Taiwan, it was unlikely to face military risks, as a global fear of war There is a core.

Sanctions on China's chip industry

As US chipmakers have failed to catch up with TSMC’s advanced processes, both the US and China are trying to work with the company to advance their industry. in USA, CHIPS Act It has provided incentives for US and foreign chipmakers to set up factories in the US, US Speaker Nancy Pelosi also visited TSMC to discuss the issue amid all security concerns.

China was already upset by what it saw as unfair U.S. aid and provocation in the region, and was even more offended by Pelosi’s visit. The company retaliated by disrupting the supply of goods from Taiwan to companies like Apple that rely on Taiwanese imports. The government of the United States of America has also since that time with Sanctions on China’s chip industry has dealt with the actions of this country.

The impact of China’s chip industry embargo on Apple

The biggest fear is that China, given the lackluster international response to Russia’s invasion of Ukraine, might be emboldened to launch a military attack on Taiwan. This issue has caused the security services in the United States and the United Kingdom to warn about this issue.

Even putting that risk aside, a number of analysts told the Financial Times that China is likely to react strongly to a U.S. embargo on its chip industry. They announced:

As competition between the United States and China heats up and the risk of a military conflict over Taiwan rises, Washington is seeking to both cut off key advanced chip supplies to Beijing and reduce its dependence on Taiwan for chip supplies. Both of these goals would potentially undermine TSMC, whose success depends on serving customers in all markets with cost-effective products at its factories in Taiwan.

Sanctions on China's chip industry

Jason Hsu, a former Taiwanese lawmaker and a current senior fellow at Harvard’s Kennedy School, said: “On the one hand, the US is pressuring TSMC to move to America, and on the other hand, it is waging a technology war against China and raising tensions.” It takes it to a higher level that puts Taiwan at risk.”

Apple is more at risk than any other company because it is completely dependent on TSMC for its A-series and M-series chips and more. Dan Niestedt, vice president of TriOrient, an Asia-based private equity firm, said: “I’m surprised that Apple and AMD decided to allow themselves to rely on just one chip supplier.”

Sanctions on China's chip industry

He continued: “This is dangerous. Even if there is no geopolitical risk; Because with the occurrence of other risks such as earthquakes and lack of electricity, Apple is still facing a big risk. Because, in fact, Apple has accepted that if TSMC is shut down, their entire company should also be shut down.

TSMC is building a chip factory in Arizona, and it looks like it could make Apple’s processors, but its plans don’t yet include the latest chip generations, Apple’s A-series and M-series chips.

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What do you think about the US embargo on China’s chip industry and Apple’s problems in this regard? Share your thoughts with us in the comments section Technology News With duplicate follow.

Source: 9to5mac

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