If Taiwan is invaded, the chips in our iPhones will suffer
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If Taiwan is invaded, the chips in our iPhones will suffer

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Investors are worried about the geopolitical situation in the Taiwan Strait.

This morning, we learned that the President of the House of Representatives of the United States went to Taiwan in order, among other things, to meet TSMC, the manufacturer of processors for iPhone. Nancy Pelosi and the founder would have mentioned the case of the CHIPS law in particular , but another key issue for the American market is to be raised after this visit.

Indeed, Board Member Mark Liu , who had the opportunity to speak with a CNN reporter (Fareed Zakaria), gave us details on what could happen if China were to invade. the small island state. And the least we can say is that these predictions are clearly not looking good…

 

Difficult future

To begin with, Liu tries to reassure by assuring that “ no one could control TSMC by force ”. The executive adds that in the event of a conflict, fleas are probably not the first thing to worry about. But this does not mean that the activities of his company will not be negatively impacted, quite the contrary.

Liu believes that the takeover of China could quickly render the TSMC company inoperative . This assembles the A15 Bionic motherboards which power the entire iPhone 13 range, but also those of iPads and Macs. As part of a major partnership with Apple under Intel’s nose and beard, hundreds of millions of components leave the factory each year.

 

What are the risks for iPhones?

For its part, Cupertino still has a well-rehearsed strategy to deal with this kind of potential mishap. Indeed, for several months we know that the Apple group tends to diversify its sources of production in order to reduce the dangers. One of the main motivations for this change is in the pandemic. The other ambition is also to reduce manufacturing costs by bringing competition into play.

We know, however, that even the biggest giants can experience difficulties: when they were released, the iPhone 12 and iPhone 12 Pro, for example, were delayed before arriving in stores because of the crisis in Asia. Caution is therefore still in order…

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