Former U.N. Ambassador Nikki Haley, on Wednesday, raised concerns that Chinese control over Taiwan could result in a global technology market disaster, given the country's strong dominance in the semiconductor sector.
In a post on X, Haley stated that Taiwan accounts for about 70% of the world's semiconductor market and more than 90% of the most advanced chips used to power everything from smartphones to autos and AI infrastructure.
Some of the leading chip companies based in Taiwan include Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), MediaTek Inc., Realtek Semiconductor and Vanguard International Semiconductor Corporation.
She argued that "If China controls Taiwan, the Communist Party gains leverage over the world's most critical tech supply chain." This would not just hurt Taiwan's "23 million people living", but would be a "threat to global freedom, security, and the future itself,” she said.
Semiconductor Fuels Taiwan's Economic Growth
Taiwan's economy witnessed the fastest pace of growth in 30 years in the first quarter, with GDP jumping to 13.69% year-on-year from 12.65% growth in the fourth quarter of 2025, driven by higher U.S. demand for the country's AI chips.
According to ING analyst Lynn Song, Taiwan is benefiting from rising tech product prices amid the ongoing AI boom. "As a producer of the most advanced chips, Taiwan has been able to maintain strong pricing power despite rising input costs,” Song said.
Notably, Taiwan Semiconductor dominates the dedicated chip foundry market, accounting for about 70% market share. The company is scaling its global expansion plans to capture surging artificial intelligence-driven semiconductor demand.
At its annual technology symposium, Deputy Co-Chief Operating Officer Kevin Zhang said AI could help push global semiconductor revenue to $1.5 trillion by 2030. AI and high-performance computing applications would account for about 55% of global semiconductor revenue, overtaking smartphones and mobile devices as the industry’s main growth engine.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Photo Courtesy: lev radin on Shutterstock.com
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