Companies and Markets

Taiwan Invasion ‘Could Wipe Off up to $1 Trillion Per Year’


A Chinese invasion of Taiwan would likely halt operations of the world’s biggest advanced chip manufacturer, TSMC, and wipe out up to $1 trillion per year from the world’s economy in the first few years, the top US spy has said.

US director of National Intelligence Avril Haines presented the figure as a “general estimate” in a testimony before the Senate Armed Services Committee.

Haines also noted in her testimony that the chips produced by Taiwan Semiconductor Manufacturing Company (TSMC) are used in 90% of “almost every category of electronic device around the world.”


Also on AF: TSMC Seeks up to $15 Billion in US CHIPS Act Subsidies


If a Chinese invasion prevents TSMC from manufacturing its advanced semiconductors, “it will have an enormous global financial impact that I think runs somewhere between $600 billion to $1 trillion on an annual basis for the first few years,” she added.

“It will also have an impact on our (US) GDP if there was such an invasion of Taiwan and that (TSMC’s production) was blocked,” Haines continued. “It would also have an impact, if they stopped making chips, on China’s economy.”


  • Reuters, with additional editing by Vishakha Saxena


Also read:


China Preparing for War, Taiwan Foreign Minister Tells CNN


Taiwan ‘Should Destroy TSMC’ If China Invades: US Strategists


Taiwan Defence Spending to Focus on ‘Total’ China Blockade


China Tensions a Factor in Berkshire TSMC Stake Sale: Buffett


China’s Taiwan Threats Prompt Funds Strategy Rethink


US Would ‘Destroy Taiwan Chip Factories if China Invaded’ – BI



Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has been working as a digital journalist since 2013, and is an experienced writer and multimedia producer. As an eager stock market trader and investor, she is keenly interested in economy, emerging markets and the intersections of finance and society. You can tweet to her @saxenavishakha


Business Asia
the authorBusiness Asia

Leave a Reply