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Thursday, August 04, 2022

By Kamal Swami

China-Taiwan Conflict May Hinder The Delivery Of Vehicles

The auto industry hasn’t come out from the havoc of the global pandemic COVID-19, a decline in the supply of semiconductor chips, and the Russia-Ukraine conflict, one more threat has started emerging in the sky. The recent visit of US House Speaker Nancy Pelosi to Taipei has further fired the tensions between China and Taiwan. If the situation continues, then it can impact badly the operations of companies manufacturing semiconductor chips. As the whole auto industry across the world is already struggling with its shortage, the degradation of the situation will further hamper the production of manufacturing chips.
Taiwan is the biggest supplier of semiconductor chips throughout the world. If the tension between both countries turns into a war, then the operations of these companies will be highly affected. The world’s largest semiconductor manufacturing company, Taiwan Semiconductor Manufacturing Co Ltd or  TSMC has already stated that if tension with Chine accelerates, then it will postpone its production activities.
This has been already said by Mark Liu from TSMS that in case China attacks Taiwan then the company will not be able to continue its operations due to its dependence on global suppliers. The impacts of this conflict will not be restricted to only the manufacturing of vehicles but also consumer electronic appliances. Going through this tense situation the Federation of Automobile Dealer Association (FADA) has also issued a warning on this. In the words of, Vinkesh Gulati, President, FADA, “After Russia- Ukraine war, the world is once again facing the threat of Taiwan- China war. Due to this, the threat of semi-conductor shortage is once again looming as chip-maker TSMC raises red flag that if war hits”. 

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