The semiconductor industry, which is heavily reliant on Taiwan, might face a significant setback due to the country’s ongoing energy crisis. This could lead to a slowdown in chip production and a rise in global semiconductor prices.
What Happened: Taiwan, a key player in the global semiconductor market, is grappling with a severe energy crunch, reported CNBC. The country’s power shortage could have serious implications for chipmakers, as the energy-intensive process of chip manufacturing is at risk.
"Concerns over potential power shortages and the deterioration of power quality and reliability could pose operational risks for the semiconductor industry," Chen Jong-Shun, an assistant research fellow at Chung-Hua Institution for Economic Research, said, according to the report.
Despite Taiwan’s status as a semiconductor powerhouse, the government is struggling to meet the island’s energy demands. This has led to concerns over potential power shortages and the reliability of the power supply, posing operational risks for the semiconductor industry.
Joseph Webster, a senior fellow ...