Apple’s chip plants, managed by Taiwan Semiconductor Manufacturing Company (TSMC), are unable to be relocated despite the increasing fears of a Chinese invasion. TSMC’s chairman, C.C. Wei, has confirmed this after discussions with some customers. The idea of moving the plants was considered following China’s war-game exercises around Taiwan, but it was deemed impractical.
The fear of a Chinese invasion has been escalating, especially with China rehearsing a military blockade of Taiwan, which is likely the first step toward an invasion. This fear was further heightened when China announced plans to reach new military heights by 2027, the 100th anniversary of the People’s Liberation Army. China has also been carrying out further military exercises in the waters around Taiwan, seemingly role-playing the steps it would take in the run-up to an invasion.
Apple, which accounts for roughly half of TSMC’s business, is certain to be one of the customers who had asked about the possibility of moving the plants. However, Wei has stated that moving the chip factories off the island is impossible, given that 80-90% of its production capacity is in Taiwan. TSMC has made contingency plans to ensure that China would not be able to use its plants in the event of an invasion.
Read more: 9to5mac.com