THESE DAYS, there are few hotter spots on the global circuit for retired government officials and military strategists than Taiwan. As dozens of policy experts from all over the world touched down for the Taipei Security Dialogue in November-the sort of event where you'd encounter a former U.S. Army secretary clad in a stars-and-stripes tie-a familiar topic took on fresh urgency: how to prevent a Chinese attack on the territory.
"Ukraine continues to fight against the Russian invasion, while conflicts continue to break out in the Middle East," Taiwan President Tsai Ing-wen told delegates. "It is clear that we cannot take peace for granted."
Taiwan has teetered in a precarious geopolitical position for decades. It's a self-governing democracy-it will elect its next president in January-but the Chinese Communist Party regards Taiwan as its own and seeks to unify the island with the People's Republic, and the party says it will do so by force if necessary.
Strategists consider a possible conflict a geopolitical crisis - and an economic one. Taiwan accounts for 30% of the $574 billion global semiconductor industry, the backbone of modern technology. At the heart of that industry is Taiwan Semiconductor Manufacturing Co., the most valuable company in Asia, whose $500 billion market cap puts it in the same league as Walmart. U.S. export controls on chipmaking equipment are squeezing out some TSMC buyers-namely China - but the Taiwanese firm still produces roughly 92% of the world's most advanced chips. TSMC components power Apple's iPhones, Nvidia's AI servers, and F-35 fighter jets. Experts fret about what would happen to technology production if TSMC's foundries fell into Beijing's hands. A blockade of the island alone would cost the global economy $2 trillion, according to a Rhodium Group estimate.
This story is from the December 2023 - January 2024 edition of Fortune US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 2023 - January 2024 edition of Fortune US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
AI Isn't Coming for Your Job At Least Not Yet
So far, the technology has replaced only a small number of workers. But the future risks many more.
THE TRUTH EVEN HE CAN'T DUCK
Aflac's DAN AMOS has spent his 34 years as CEO selling insurance against illness and death. Now he has to confront his aging customers' mortality and his own.
THE NEW HOLLYWOOD POWER PARADIGM
Inside the sisterhood of stars changing the narrative.
SAUDI ARABIA'S POWER PIPELINE
The oil earnings flowing from the most profitable company in history are helping the Saudi kingdom shake up the global economyand the old geopolitical order.
THE [FOREVER] FOUNDER
Michael Dell turned his dorm-room PC company into the go-to hardware provider for 99% of the Fortune 500. Now the longest-standing founder-CEO in tech has a chance to cash in on the AI bbom—and make himself and his company bigger than ever.
HOW BOEING BROKE DOWN
Boeing's strategy sent the stock soaring more than 1,000% over 20 years. But it contained dangerous flaws that are only now coming into view amid a drumbeat of terrible news.
The Art of Banking
To appeal to the ultrawealthy, banks like UBS keep fine art-and art expertsclose at hand.
Is the Bitcoin Bull Market Safe to Buy?
ETFs have made Bitcoin investing easier than ever. But they may be adding air to a bubble.
Goodbye, Tough Guy
More executives are going on all-male retreats to open up, feel less lonely, and build empathy.
Memo to Silicon Valley: Bring It On
New York City's Runway was the pioneering leader in Al-generated video for years. Now ChatGPT maker OpenAl is coming for it.