Vice President Mike Pence recently clarified that China's reunification with Taiwan could lead to a serious economic disruption in the United States. His key points: the U.S. is concerned not only about territory but also about high-tech supply chains, particularly TSMC, the world's leading manufacturer of advanced semiconductors.

🔹 Missiles and chips: Two sides of the same network

Military: Patriot missiles have been deployed to 'protect' Taiwan, but this effectively turns the island into a frontline position, increasing defense spending and tying the island's security to U.S. military strategy.

Economic: TSMC controls the production of critical chips for smartphones, AI, electric vehicles, and defense systems. The U.S. heavily relies on TSMC, making Taiwan a strategically important economic hub.

Together, these elements form a single interconnected network, linking Taiwan militarily and economically to U.S. interests.

🔹 Chip crisis

Domestic U.S. chip production has dropped from 37% to 12% of global output

Taiwan alone accounts for 22% of global chip production capacity, with a large portion being advanced (5 nanometers, 3 nanometers)#USTradeDeficitShrink

Even American companies that achieve 47% of global chip sales produce 88% of them overseas, heavily relying on TSMC

🔹 Attempts at control#币安HODLer空投BREV

Financial support (Chips Act) and forcing TSMC to relocate its headquarters to the United States face structural obstacles:#USNonFarmPayrollReport

Shortage of qualified workforce

Long construction periods (over 3 years per factory)

Higher costs (30 to 50% more than Taiwan)$ZEC

Taiwan's economy is deeply linked to TSMC: 20% of GDP, 40% of exports, and 10% of energy consumption

This strategy extracts economic 'protection' fees (by forcing investment in U.S. factories) and military protection payments (by purchasing weapons).

🔹 Hidden strategic vulnerabilities

Even if TSMC factories are built in the United States, the core technologies and supply chains remain in Taiwan/Asia

Domestic chip production in China is growing rapidly and could reach 24% of global output soon

U.S. attempts to control Taiwan reveal a structural weakness rather than strength

💡 Core insight

Vance's statement reveals the fragility of American dominance:

Military and economic factors are intertwined but unsustainable

Dependence on foreign technology undermines the claimed strategic superiority

Taiwan and TSMC cannot be considered permanent 'hostages' without causing the collapse of the American semiconductor industry

Final conclusion:

While missiles and chips may appear as a strong strategic network, reality shows they are fragile. Taiwan is used as a tool to compensate for the U.S.'s industrial shortfall, and the cost of this miscalculation could have long-term geopolitical and economic consequences.

DYOR | NFA