Taiwan makes 40% of the world's chips. A one-day power grid attack there would force fabs to scrap months of work, halting supply for a year. The result could shrink global GDP by 5%.
Taiwan produces 40% of all the chips. So if Taiwan were to go dark in the event of conflict, you have a global depression. Even if you think about the very best case scenario for China, you have a one-day war where the Chinese target the power systems in Taiwan, electricity to utilize their air defenses. When that power goes out for one day, the entire production line of all the chips has to be thrown out. Takes about 9 months to make a single chip. So basically for a year, that whole supply of chip is gone. That's like if it's a one-day conflict, and that's if those fabs aren't being damaged and people aren't killed. Estimates are 5% GDP contraction. Absolutely devastating to global economy.
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