Taiwan Invasion Would Wreck US Economy, Military Development: Report

The Arleigh Burke-class guided-missile destroyer USS Chung-Hoon is observing the Chinese PLA Navy vessel Luyang III (top) while on a transit through the Taiwan Strait with the Royal Canadian Navy's HMCS Montreal, on June 3, 2023. Andre T. Richard/U.S. Navy/AFP/Getty Images

A Chinese communist invasion of Taiwan would wreck the United States’ economy and military development due to the nation’s reliance on the island for its advanced semiconductors, according to a new report.

The report (pdf), published jointly by the U.S.-Taiwan Business Council and the Project 2049 Institute think tank, says that any disruption in access to Taiwan’s semiconductor industry could cause cascading and catastrophic effects for the U.S. economy and national security.