China’s Military Threats to Taiwan Could Disrupt Its Own Semiconductor Supply Chain

A People's Liberation Army member looks through binoculars during military exercises. Taiwan's frigate, Lan Yang, is seen at the rear on Aug. 5, 2022. Lin Jian/Xinhua via AP, File

Following U.S. House Speaker Nancy Pelosi’s visit to Taiwan in early August, the Chinese Communist Party (CCP) threatened to normalize military exercises in the Taiwan Strait. But this action could disrupt China’s own critical supply chain.

China is the biggest consumer of semiconductor chips in the world, but its production rate is less than 20 percent of its needs.