Earthquake in Taiwan Could Affect Us All! – Webtekno

Taiwan woke up to a 7.4 magnitude earthquake. The possible casualties and damages of such a large-scale earthquake are not yet clear, and it is not known to what extent it will affect the world economy. Considering its strategic role in technology products, especially in the semiconductor and chip industry, the effects of the earthquake can be quite widespread.

Not just at the local level global supply chains, It is useful not to ignore the possible effects of this earthquake, which can also be felt in terms of economic stability and technological innovation.

Let’s consider possible scenarios while remembering that Taiwan is more than we think. We hope that the loss of life will be minimal and The world economy will not be deeply affected results in this way.

Considering that Taiwan is the largest player in the semiconductor market, there may be serious disruptions in the supply chain.

Taiwan’s leadership in semiconductor production, making it indispensable for the global technology market. Based in Taiwan TSMC (Taiwan Semiconductor Manufacturing Company) is a leading company that carries out the majority of semiconductor production worldwide. Including the processors of the iPhones you use…

TSMC; It is the largest producer of microchips that are critical for a wide range of products such as smartphones, computers and automobile electronics. This company is a global semiconductor company approximately 54% of the market holdings, making it the single largest player in this space.

taiwan chip

Physical damage that may occur as a result of the earthquake in Taiwan, which hit the transportation infrastructure, people’s panic and many other reasons, may cause significant delays in production. This could cause disruptions in the global supply chain of a wide range of products, from smartphones to automobiles.

Any interruption that may occur in the production capacity of companies such as TSMC, in global electronic markets can cause major problems. For example, the global chip shortage experienced in 2020 and 2021 negatively affected many sectors, from automobile production to consumer electronics.

We may encounter economic fluctuations.

Taiwan semiconductor

Approximately 70 percent of the country’s economy; It is based on revenues from exports of goods such as technology products, computers, consumer electronics and especially semiconductors. Total export value in 2023 More than $800 billion This makes Taiwan one of the top 20 exporters worldwide.

taiwan and apple

Taiwanese companies; Apple, Dell, Acer, HP and other major leading consumer electronics brands Their long-term relations with Turkey are also a cause for concern. It is vital not only for companies but also for consumers. Because disruptions in semiconductor production may cause delays in the supply of electronic products on a global scale, as well as for different reasons such as increased producer costs. price increases It can also cause us to see.

Disruptions may also occur in many technological advances such as artificial intelligence and 5G.

taiwan chip crisis

Taiwan, American IC design company It creates a supply chain by providing semiconductor production. This is like artificial intelligence, 5G in high performance computing technology It means it has an effect.

Taiwan’s role is great not only in electronics but also in the textile field. Taiwan is the fifth largest exporter Production of many brands such as Adidas and Nike is being done. We no longer know how much an Adidas shoe will cost us.

In addition to price increases and fluctuations, the earthquake can have a broader impact not only on technology. Considering the country’s place in the world economy, growth rates may be affected, Instability in broad financial markets may occur.

More specifically, the earthquake in Taiwan may also upset iPhone users.

taiwan iphone

One of the countries that produces everything from Apple’s processors to cases is Taiwan, which ranks second with a 23 percent share. Core processors, Wi-Fi chips, The most valuable components, including 5G modems and premium camera lenses, are produced by Taiwanese companies.

iPhone’s total bill of materials approximately 200 dollars, or 36 percent Any outage in the chips of the Taiwanese companies that make up the chip could cause losses of approximately $500 billion to these supply-dependent electronic device manufacturers. We all know what this means, right?

We hope that Taiwan, which has a complete supply chain from printed circuit boards to chips, lenses and assembly of the electronic brands in our lives, will survive this earthquake with minimal damage.

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