TSMC's Advanced Chipmaking Machines and the Rising Geopolitical Tensions in Taiwan

Two of the world's most important chip companies, ASML and TSMC, are in the spotlight amidst rising tensions between China and Taiwan. According to Bloomberg, ASML, a Dutch company, can remotely activate a 'kill switch' on its chipmaking machines if China invades Taiwan. This development underscores the critical role Taiwan plays in the global semiconductor industry. ASML is a key supplier to TSMC, Taiwan's leading chip producer, responsible for around 90% of the world's most advanced processor chips. As geopolitical tensions escalate, the possibility of forced shutdowns and supply chain disruptions looms large. The US has imposed restrictions on China's access to advanced chips, reflecting concerns over a potential Chinese invasion of Taiwan. Taiwan's strategic importance in semiconductor manufacturing has drawn international attention, with implications for global markets and technology.