As Taiwan ups defense spending and invests in air defenses to fend of possible missile attacks as part of a foreign invasion, a researcher from the Taiwan National Science and Technology Council (NSTC) Hsinchu Science Park Bureau suggested that a single missile strike targeting the Hsinchu Science Park would have catastrophic effects worldwide, resulting in a 6% to 10% drop in global GDP and halting iPhone production for several years. According to Nikkei Asia, Taiwan’s Silicon Valley houses more than 600 tech companies and research bodies, with Taiwan Semiconductor Manufacturing Company (TSMC), the largest chip foundry in the world, operating six major fabs in the area.
“If even one missile from China hits a key manufacturing center in Hsinchu, it would probably be impossible to get a new iPhone for three years,” said NSTC Associate Researcher Scott Huang. This was further corroborated by Lien Hsien-ming, the president of the Taiwanese think tank Chung-Hua Institution for Economic Research, who suggested a global GDP drop of around 6% to 10% because of the disruption in semiconductor production. “Conditions would be catastrophic,” says Lien.
