The United States, Israel, and Iran are entering their third week of conflict, one that has created a deadly new chokepoint at the Strait of Hormuz. Ships that usually carry large amounts of oil and LNG through this trade route are now blocked. As a result, Taiwan — the global hub for the world's most important and high-end chips — is on the verge of facing an energy and materials crisis, according to Bloomberg.
Taiwan is heavily reliant on foreign resources for its energy needs; the country imports about 97% of all of its power. The Middle East supplies 37% of the fuel that powers Taiwan's electric grid, which runs on liquefied natural gas (LNG). This electricity is then used by the island's chipmakers, like TSMC, whose fabrication plants have enormous power appetites and require a continuous, stable supply to operate.
