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Taiwan Quake Puts World’s Most Advanced Chips at Risk
Why is that important for tech?
Taiwan is the leading producer of the most advanced semiconductors in the world, including the processors at the heart of the latest iPhones and the Nvidia graphics chips that train AI models like OpenAI’s ChatGPT. TSMC has become the tech linchpin because it’s the most advanced in producing complex chips. Taiwan is the source of an estimated 80% to 90% of the highest-end chips — there is effectively no substitute. Jan-Peter Kleinhans, director of the technology and geopolitics project at Berlin-based think tank Stiftung Neue Verantwortung, has called Taiwan “potentially the most critical single point of failure” in the semiconductor industry.
What are the implications for AI?
Artificial intelligence is the hottest sector in tech at the moment, and leaders from OpenAI’s Sam Altman to Nvidia’s Jensen Huang have warned about shortages in the chips needed for training new AI services. All of Nvidia’s AI orders now go to TSMC so even brief disruptions to the company’s high-end output is likely to have repercussions. A lot will depend on which plants the company has evacuated and how quickly it can resume normal operations. Any impact on Taiwan’s logistics and power infrastructure would also affect deliveries of the latest chips. TSMC and other chipmakers have not yet detailed what the quake’s impact will be.
Why is that important for tech?
Taiwan is the leading producer of the most advanced semiconductors in the world, including the processors at the heart of the latest iPhones and the Nvidia graphics chips that train AI models like OpenAI’s ChatGPT. TSMC has become the tech linchpin because it’s the most advanced in producing complex chips. Taiwan is the source of an estimated 80% to 90% of the highest-end chips — there is effectively no substitute. Jan-Peter Kleinhans, director of the technology and geopolitics project at Berlin-based think tank Stiftung Neue Verantwortung, has called Taiwan “potentially the most critical single point of failure” in the semiconductor industry.
What are the implications for AI?
Artificial intelligence is the hottest sector in tech at the moment, and leaders from OpenAI’s Sam Altman to Nvidia’s Jensen Huang have warned about shortages in the chips needed for training new AI services. All of Nvidia’s AI orders now go to TSMC so even brief disruptions to the company’s high-end output is likely to have repercussions. A lot will depend on which plants the company has evacuated and how quickly it can resume normal operations. Any impact on Taiwan’s logistics and power infrastructure would also affect deliveries of the latest chips. TSMC and other chipmakers have not yet detailed what the quake’s impact will be.