The global economy could suffer setbacks of up to US$1 trillion per year if Taiwan’s production of semiconductors ceased due to an invasion. That’s according to U.S. Director of National Intelligence Avril Haines, who made the comments during a hearing of the Senate Armed Services Committee on Thursday. Haines, citing outside think tank reports, says if Taiwan chipmaker TSMC ceased its production, the global economy could lose between US$600 billion and US$1 trillion per year. She says TSMC’s production accounts for around 90% of the world’s most advanced chips.
Haines says that U.S. intelligence agencies believe that Chinese leader Xi Jinping (習近平) still prefers peaceful unification, but is also preparing for a potential military conflict.
Director of the Defense Intelligence Agency Scott Berrier also testified at the hearing, saying that Xi’s rhetoric has been getting more aggressive over time. Berrier says the bottom line is that Xi has told his military to be ready, though his agency cannot be sure when or what Xi is preparing for.