https://americanmind.org/salvo/the-chips-are-down/
Russia’s nuclear arsenal is the principal reason given by the United States and NATO for refusing to engage Russia directly in Ukraine. Nuclear war also will be a risk if China invades Taiwan.
There are, of course, differences in an analysis of the U.S. response to a potential Chinese invasion of Taiwan. For one, without NATO, the U.S. would largely face China on its own. Also, China has a stronger claim on Taiwan than Russia does on Ukraine. On the other hand, much more importantly to the United States, Taiwan is the world’s principal fabricator of semiconductor chips. Semiconductors are the new oil. Whoever controls semiconductors can control the world.
According to the Semiconductor Industry Association (SIA), although the U.S. is the world’s leader in headquarters for companies generating semiconductor demand (33 percent) and for end users (25 percent), the U.S. manufactures just 19 percent of all chips, while mainland China supplies 35 percent and Taiwan 15 percent. If China invades Taiwan, 50 percent of the world’s chip production will be controlled by China.
Taiwan may manufacture only 15 percent of all chips, but it manufactures 92 percent of the world’s advanced chips. All advanced chips not made in Taiwan are manufactured in South Korea; none are produced in the United States or Europe. If China were to invade Taiwan, the U.S. and the world could lose access to almost all leading-edge chips, almost two-thirds of more-mature microprocessors, and half of all dynamic random-access memory (DRAM) chips.