Quote of the day
The scale of the United States’ economic dependence on Taiwan is revealing. Taiwan is the country’s fifth-largest trading partner; a Chinese blockade of the island would imperil more than $250 billion in trade and could shave more than three percent off U.S. GDP in a year, according to a Bloomberg report. As much as 97 percent of the global supply of the high-end logic chips used in smartphones and other advanced electronics are produced or packaged in Taiwan. Losing access to Taiwanese chips could reduce advanced electronics production globally by 60 percent, with factories forced to rely on their chip inventories. The United States’ auto and medical device industries could deplete their inventories in a matter of weeks. The U.S. firms Amazon, Apple, and Nvidia are among the Taiwan Semiconductor Manufacturing Company’s ten largest customers, which together represent more than $14 trillion in market capitalization. With AI growth buoying the U.S. stock market and the broader economy, a...