ASML and TMSC will remotely disable chip machines if China invades Taiwan: Bloomberg
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The news: World-leading chipmakers ASML and Taiwan Semiconductor Manufacturing Co (TSMC) are able to disable their chipmaking machines remotely should China invade Taiwan, according to sources cited by Bloomberg.
The numbers: Around 90% of the world’s most advanced chips are currently made in Taiwan. The Biden administration is attempting to boost production in the US, and made USD39 billion ($58.46 billion) in grants available to chipmakers under the CHIPS and Science Act in 2022.
The context: US government officials expressed their concerns to both chipmakers about a potential scenario where China were to invade Taiwan. China claims that Taiwan is its territory, and Chinese President Xi Jinping has long been pushing for unification while refusing to rule out a military intervention.
Dutch manufacturer ASML assured officials it would be able to switch off its chip making machines remotely in the event of a Chinese invasion, and has also run simulations on the scenario.
In January, US officials pressured ASML to cancel shipments of its chips to China, weeks before the Netherlands own import bans were set to take effect.
In addition to banning the export of US chips to China, the Biden administration increased its tariffs on imports of Chinese chips from 25% to 50% by 2025 last week.
The sources: Bloomberg, Capital Brief
