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US-China tech war: semiconductor links across Taiwan Strait face political headwinds

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The long-standing bond between mainland China, the world’s second-largest economy, and semiconductor powerhouse Taiwan faces its stiffest challenge in decades amid increased cross-strait tensions and growing friction between Beijing and Washington.

While the close economic ties between the mainland and Taiwan are not expected to unravel, analysts warn that the strained cross-strait and US-China relations could bring more uncertainty to global supply chains after the disruptions caused by the Covid-19 pandemic and the ongoing chip shortage.

Speculation about what could happen next is expected to rise this week when US President Joe Biden hosts the first of two Summits for Democracy on December 9-10. Taiwan is among 110 invitees to the virtual event, which brings together leaders from government, civil society and the private sector, according to the US State Department. China and Russia were not invited.

Sourcescmp.com

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