Taiwan produces over 90% of advanced AI chips, creating global economic vulnerability

Taiwan's semiconductor industry has become the world's critical dependency, with over 90% of advanced AI chips manufactured on the island, according to DW News analysis. The concentration reflects Taiwan's dominance in cutting-edge chip production driven by the global AI boom, but creates systemic risk if supply is disrupted by geopolitical conflict, natural disaster, or supply-chain failure. For the United States, Taiwan's chip chokepoint directly affects US technology companies, defense capabilities, and consumer electronics prices—making Taiwan's stability a core US economic and national security interest. The analysis frames Taiwan's economic surge as inseparable from the geopolitical tensions that could threaten it.