Risk of Market Crash from China-Taiwan Conflict

15 days ago

Paul

"Now, the first factor which would very quickly crash the US stock market is actually something totally out of our control. And that is China going to war with Taiwan. And believe it or not, that conflict, which would be happening 7,800 miles away from the stock exchanges in New York, would likely have an immediate impact. Why? The US is very dependent on Taiwan for semiconductor chips. Now, I made a video on this recently, but one big problem the US is trying to desperately fix right now is that all of the world's most advanced chips, the ones that Nvidia is selling, the ones Apple is putting in their iPhones and their MacBooks, the ones powering the magnificent seven companies to new heights, well, all of these chips are made in Taiwan by one company called TSMC. And here's the thing, TSMC is the only company that can make the world's most advanced chips at scale."

The speaker outlines a macro risk where a potential conflict between China and Taiwan could trigger a market crash due to the US's heavy reliance on Taiwanese semiconductor production, especially by TSMC, which is critical for advanced chip manufacturing used by major tech companies.

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