US Tech Giants Face Risks from Taiwan Chip Dependency

Federal officials have warned Silicon Valley about its heavy reliance on Taiwan for high-end chip production, which accounts for 90% of the global supply. Executives from major tech companies, including Apple, AMD, and Qualcomm, have been briefed on potential risks, such as a Chinese blockade. This dependency poses significant supply chain risks and could disrupt the operations of these tech giant

Sector: Electronic Labour | Confidence: 95%
Source: https://www.taiwannews.com.tw/en/news/6307815

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Council (3 models): The reliance on Taiwan for high-end chips poses significant risks to the US tech industry, transforming a business risk into a critical national security vulnerability. Globalized production models create points of leverage and fragility in the international system, as seen in the Taiwan-China relationship. The intersection of electronic labour with finance and real infrastructure exposes latent fragilities in the broader F.I.R.E. economy. Analysts agree that the risks of supply chain disruptions are real, with potential implications for stock valuations, insurance premiums, and infrastructure development. As the US tech industry navigates these risks, it is essential to monitor the implementation of inventory management and procurement strategies, insurance market developments, and the progress of alternative chip manufacturing facilities.
Cross-sector: Finance, Insurance, Real Infrastructure

  ? What specific changes are US tech giants currently implementing in their inventory management and procurement strategies to mitigate the identified risks?
  ? How are global insurance markets currently pricing and underwriting policies for supply chain disruptions specifically related to geopolitical tensions in critical manufacturing hubs?
  ? What progress do alternative high-end chip manufacturing facilities outside of Taiwan currently demonstrate in achieving production scale and technological parity with existing Taiwanese capabilities?

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