Max HenryFounder & Executive Director, Global Supply Chain Council (GSCC) · Founder & Executive Director at Global Supply Chain Council (GSCC)

The Future of Semiconductors: Global Economy Impact and Potential Shortage

13 May 2024 · 1 min

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1:05

In this segment of the video, the speaker warns that a sudden geopolitical disruption—such as an invasion affecting Taiwan—could cripple the global semiconductor supply chain. TSMC, the world’s leading chip manufacturer, dominates production and there are few alternative sources currently available. While new fabs are slated to come online in the next one to two years, an immediate crisis would trigger a severe shortage, price spikes, and widespread stoppages across many industries. The speaker urges political leaders to intervene to prevent such an outcome, emphasizing the high stakes for the global economy.

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If it would be an invasion, we all would have a problem because if we call it semiconductors, right, and we call it TSMC, for example, there are not so many alternative sources available as yet, right? And we know that a lot of, you know, new factories are opening up in the next 1 or 2 years. But if it would happen right now, I think there would be such kind of big impact in terms of, you know, the global economy, because everyone needs semiconductors and there will be a shortage on supply. So we only can hope, you know, that there is enough political influence on certain leaders so that it won't happen, because if it would happen right now, like I said, the white elephant in the room is There will be a shortage, there will be a price explosion, and a stoppage of many, many, many industries globally.