US Warns Tech Firms on Taiwan Chip Risks from China

U.S. national security officials have intensified warnings to Silicon Valley executives about the risks of relying on Taiwan for advanced semiconductor production, citing China's growing military pressure on the island as a potential trigger for a global economic crisis.

In closed-door briefings in Washington and Silicon Valley, officials from agencies including the CIA and the Office of the Director of National Intelligence have informed leaders at companies such as Apple, Advanced Micro Devices and Qualcomm that Beijing is preparing plans to retake Taiwan, which it regards as a breakaway province. A blockade or invasion could sever the supply of high-end chips, which Taiwan manufactures for about 90 percent of the world's needs, including those powering smartphones, laptops and artificial intelligence systems. These warnings, delivered as recently as a classified July 2023 session, underscore projections of severe disruptions, with one industry report estimating an 11 percent drop in U.S. output and broader economic fallout comparable to the Great Depression if Taiwanese chip flows halt.

The briefings highlight Taiwan's pivotal role in the global technology supply chain. The...