Do You Know Why the U.S. and China are So Interested in Taiwan?

Did you know that the world is ruled by one company?

Shocked?

Taiwan Semiconductor Manufacturing Company may not be a household name, but its chips are everywhere. In iPhones, air conditioning units, smart doorbells, computers, cars, F-35 fighter jets, and even NASA’s Perseverance Rover that landed on Mars.

One company pretty much has a global monopoly. Taiwan Semiconductor Nestled on the northwest coast of Taiwan, TSMC produces 92% of the most advanced chips in the world. It’s one of only two companies that mass-produces chips below 10 nanometers, the other being Samsung.

When House Speaker Nancy Pelosi visited Taiwan in August 2022, she made it a point to meet with TSMC Chairman Mark Liu - a sign of just how important the company is.

Beijing spent weeks telling Pelosi not to go to Taiwan, an island that Chinese President Xi Jinping believes is a breakaway province and has threatened to invade.

In light of Pelosi’s visit, Beijing sanctioned Taiwan by suspending imports of citrus fruits and fish.

Of course, Beijing did NOT ban Taiwanese semiconductors because it relies on them like everyone else.

China needs TSMC just as much as the United States does. As geopolitical tensions rise, Taiwan Semiconductors' importance on the world stage may be the island’s most important bargaining chip.