Taiwan Makes 90% of Advanced Chips. Silicon Valley Finally Notices Geography.

What Happened

The New York Times reports on the semiconductor industry's heavy reliance on Taiwan for advanced chip production, highlighting potential supply chain vulnerabilities that technology companies have not adequately addressed. Taiwan Semiconductor Manufacturing Company produces roughly 90% of the world's most advanced chips.

Historical Context

Supply chain concentration isn't new: Britain controlled 80% of global shipping in 1900, OPEC controlled 70% of oil exports in the 1970s, and rare earth minerals are 80% controlled by China today. Industries always concentrate around expertise and infrastructure until disrupted. The 2011 Japan earthquake shut down 20% of global semiconductor production for months. Companies adapted. The 2021 chip shortage lasted two years - the world didn't end, it prioritized differently.

What's In Your Control

Whether you panic-buy electronics (don't). Whether your company diversifies suppliers if you run one. Whether you check if your investment portfolio is overexposed to Taiwan-dependent tech stocks. Whether you support policies encouraging domestic chip production.

Does This Require Action?

If you're in tech leadership or policy: this matters for planning. If you're an investor: worth reviewing exposure. For everyone else: awareness only. Supply chains have always had vulnerabilities. Markets price in known risks eventually.