US Would Face ‘Deep and Immediate Recession’ If Chips from Taiwan Stop Flowing, Warns Commerce Secretary

MediaTek chips are seen on a development board at the MediaTek booth during the 2015 Computex exhibition in Taipei, Taiwan, on June 3, 2015. Pichi Chuang/Reuters

The United States would face a “deep and immediate recession” if access to Taiwan’s computer chips plants are cut off, said Commerce Secretary Gina Raimondo on July 21 to CNBC.

The secretary’s comments come as Congress is gathering key votes on a bill to fund semiconductor manufacturing at home, called the CHIPS Act.