Global chip supply chain under threat as US-Iran conflict enters third week — Strait of Hormuz blockade is days away from crippling Taiwan's semiconductor industry

The ongoing conflict between the US, Israel, and Iran has led to a blockade at the Strait of Hormuz, threatening the global chip supply chain. Taiwan, a key player in semiconductor manufacturing, is at risk due to potential energy and materials shortages caused by the blockade. Taiwan heavily relies on imported resources for its energy needs, including LNG and helium, which are crucial for chip fabrication. While Taiwan has secured some supplies for the near future, any prolonged disruption could impact semiconductor production and potentially lead to prioritization of higher-margin AI chips over other components. The global tech supply chain is already strained, and the conflict could further exacerbate the situation.