ASML and TSMC have a 'kill switch' to block chip equipment if China invades Taiwan

The article discusses the potential implications of a Chinese invasion of Taiwan for the semiconductor industry. ASML, a Dutch company that manufactures advanced chipmaking equipment, and TSMC, a Taiwanese semiconductor manufacturer, have implemented a ‘kill switch’ that would prevent their equipment from being used if China invades Taiwan. This measure aims to protect their intellectual property and prevent China from gaining access to cutting-edge chip technology. The article highlights the importance of Taiwan’s semiconductor industry, which accounts for over 60% of global chip production and is a critical supplier for major tech companies. A potential Chinese invasion could disrupt global supply chains and exacerbate the ongoing chip shortage. The article also explores the geopolitical tensions surrounding Taiwan and the potential economic consequences of a conflict for the tech industry and global economy.

Source: https://www.businessinsider.com/asml-tsmc-semiconductor-chip-equipment-kill-switch-china-invade-taiwan-2024-5