Around 90% of the world’s advanced AI chips are made in Taiwan, whose electrical grid draws roughly one-third of its fuel from the Middle East
The escalating Iran conflict, if prolonged, could hit the global semiconductor industry, potentially threatening AI chip supply from Taiwan Semiconductor Manufacturing Co. (TSMC).
TSMC makes around 90% of the world’s advanced AI chips. While the company and Taiwan have issued reassurances, analysts note that the island’s economy depends heavily on Middle Eastern imports. This includes critical raw materials like helium from Qatar and sulfur, both of which are essential for high-tech manufacturing.
Additionally, Taiwan’s electrical grid draws roughly one-third of its fuel from the Middle East, meaning any regional instability could trigger power spikes that, in turn, affect TSMC.
Meanwhile, Israel’s military operations have entered an aggressive new phase as ground forces pushed into southern Lebanon this week to strike the Hezbollah paramilitary group, an ally of Iran.
The move has officially widened the regional war. Israel’s military is already stretched across multiple conflict zones, including Gaza, the West Bank, and Syria.