Taiwan is a big part of global trade: Here’s what US-China tension can affect
India Today
According to a report, semiconductors are the world’s fourth most traded product. Taiwan hosts 20% of the total global semiconductor capacity and China and the US are two of the biggest consumers.
At the centre of the simmering tension following US House of Representatives Speaker Nancy Pelosi’s visit to Taiwan is the race to dominate the global semiconductor trade.
Taiwan is estimated to host 20 per cent of the total global semiconductor capacity — and China and the US happen to be two of the biggest consumers.
Have a look at these facts to get a sense of how high the stakes are:
1. According to a Boston Consulting Group (BCG) report, semiconductors are the world’s fourth most traded product, involving as many as 120 countries. It is only behind crude oil, motor vehicles and spare parts, and edible oil.
2. The total global semiconductor trade reached $1.7 trillion in value in the pre-pandemic year of 2019.
3. China’s share in the design and manufacturing of semiconductors is low but it accounts for the production of 35 per cent of all chip-enabled devices.
4. The US is not only the biggest consumer of semiconductor-based devices, it also headquarters 33 per cent of the makers of such devices — essentially, the US is a big beneficiary of the burgeoning semiconductor trade.
