MUMBAI: Awidely shared post by geopolitical commentator Shanaka Anslem Perera has kicked off a conversation around how the ongoing West Asia conflict could spill over into the global chip supply chain, especially through Taiwan, home to TSMC.
In a post on X, Perera argued that the war in the Persian Gulf could indirectly threaten the production of advanced chips that power everything from artificial intelligence systems to smartphones.
Perera pointed out that Taiwan Semiconductor Manufacturing Company (TSMC) produces the majority of the world’s most advanced chips – including processors used by companies like Nvidia, Apple, and AMD.
He noted that Taiwan, despite its central role in global tech, is heavily dependent on energy imports, with limited domestic reserves.
“TSMC manufactures 90 per cent of the world’s most advanced logic chips on an island that imports 97 per cent of its energy,” he wrote, adding that Taiwan holds around 11 days of natural gas reserves.
The thread also highlighted concerns around liquefied natural gas (LNG) and helium — both critical for semiconductor manufacturing.
Perera said Taiwan depends heavily on LNG supplies from the Middle East, including Qatar, and any disruption there could hit its energy supply.
He also flagged helium, a key input in advanced chipmaking, as a possible weak spot, warning that shortages or rising prices could start affecting production.
Without helium, he argued, the machines used to manufacture cutting-edge chips would not function.
Despite the concerns raised online, there has been no official indication of immediate disruption to chip production.
TSMC has said operations are running as usual, and that it’s keeping a close watch on the situation. Taiwan’s economic authorities have also maintained that energy supplies are secure for the time being, even as they work to ensure there are no gaps ahead.
Still, the conversation itself says a lot. It shows how quickly global tensions, even those far from East Asia, can raise questions about supply chains that are deeply interconnected.
Perera also pointed to a bigger, more strategic angle – that if tensions widen or start affecting key shipping routes, the impact could go beyond just the Middle East.
That remains a possibility for now, not a certainty.
Agencies