China invasion of Taiwan would cause major blow to high-tech supply chain, warns boss of semiconductors firm

Published

2 years ago

January 20, 2023

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If China invaded Taiwan there would be major impacts across the global high-tech supply chain “in weeks”, according to the chief executive of one of the most important companies involved in making vital semiconductor chips.

Speaking exclusively to Sky News, Doris Hsu, CEO of Taiwan-based GlobalWafers, also said customers have “a lot of concerns” about China’s intentions in Taiwan and it’s one of the reasons the firm had opted to locate its new plant in Texas.

Increased tension across the Taiwan Strait has led to concerns that companies will look to protect themselves by withdrawing from the self-governing island that China sees as its own and direct longer-term investments elsewhere.

Taiwan is a vital global player in technological development and manufacturing, particularly semiconductors.

Semiconductors are the vital microchips described as the “brain” in modern electronics; they power everything from planes and appliances to cars and smartphones.

Taiwan manufactures around 90% of the world’s most advanced semiconductors and around 50% of the broader market, much of them made by global leader TSMC.

Any disruption to this would be catastrophic to global supply chains.

GlobalWafers manufactures silicon wafers, one of the crucial parts in semiconductors. It is the world’s third-largest supplier of this component and one of TSMC’s most important suppliers.

“Some of our customers do have quite a lot of concern about the overall security in Taiwan,” says Ms Hsu. “They want us to be more diversified.”

“In 20 years we have never been asked so frequently as we have recently, so many customers saying ‘Hey Doris, what if anything goes wrong? What’s your contingency plan?'”

Speaking about the company’s new $5bn (£4bn) chip plant in Texas, she said one of the reasons for the decision was “contingency or risk management”.

While GlobalWafers is already a very globalised company, with 18 operations across nine countries, the threat of future instability is having an impact on decision making.

“I have been in this industry for over 20 years,” she says.

“In last 20 years, I have had to care more about the business, economic issues, the engineering stuff. What about IP [intellectual property]? What about your leadership or technology? But now I have to think about global political-related issues!”

‘Attack would affect $2trn of trade’

Semiconductors are just one of the areas where Taiwan punches hugely above its weight. Despite its small size, it is the world’s 16th-largest trading economy.

Research organisation the Rhodium Group has estimated that any form of attack or blockade to Taiwan would impact $2trn of economic activity, before taking into account any sanctions or secondary impacts.

There have been concerns that some firms, burnt perhaps by experiences in Russia, would look to move some operations away from the island.

Brompton Bikes, the British bicycle manufacturer, is just one firm that has indicated it will do this.

But experts say there is no mass exodus, more a gentle drip of long-term investment decisions going elsewhere.

“Most companies are not thinking actually about pulling out or relocation – but expansion,” explains Kirsty Tzun-Tzu Hsu, director of the Taiwan ASEAN Studies Center at Chung-Hua Institution of Economic Research.

“They are expanding their supply or supply chain from Taiwan to other countries or other regions, so that they may have someplace to back up if Taiwan cannot produce as quickly or as according to the expected timeframe.”

China is one of many nations also reliant on Taiwan’s high-tech sector and this has been cited by some experts as a reason an invasion may not happen.

World

IDF chief says conditions ‘created’ for Gaza ceasefire – as Trump says it could be ‘this week or next’

Published

13 hours ago

July 9, 2025

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IDF chief says conditions 'created' for Gaza ceasefire - as Trump says it could be 'this week or next'

Donald Trump and a leading figure in the Israeli army have suggested a ceasefire in Gaza could be close.

Eyal Zamir, chief of staff of the Israel Defence Forces (IDF), told Israeli media that “conditions were created to advance a deal” to bring about an end to the conflict in the coastal territory, and the release of hostages.

In a televised address, he said: “We have achieved many significant results, we have caused great damage to the governance and military capabilities of Hamas.

“Thanks to the operational power that we have demonstrated, the conditions have been created to advance a deal to release the hostages.”

‘This week, or next’

It comes as the US president hosts Israeli Prime Minister Benjamin Netanyahu in Washington DC on a prolonged visit this week.

Mr Trump said his meetings with Mr Netanyahu were focused “on Gaza for the most part”.

He said: “I think we have a chance [of a ceasefire] this week, or next week.”

However, the US leader added: “Not definitely,” saying nothing was certain about the situation in Gaza.

Hamas reiterates ‘keenness’ to end fighting

Meanwhile, Hamas has repeated its message that it is committed to the negotiations but warned of a number of sticking points despite the positive noises from senior Israeli figures.

In a statement, the militant group said: “In its keenness to succeed in the ongoing efforts, the movement [Hamas] has shown the necessary flexibility and agreed to release 10 prisoners.

“The key points remain under negotiation, foremost among them: the flow of aid, the withdrawal of the occupation from the territories of the Gaza Strip, and the provision of real guarantees for a permanent ceasefire.”

Mr Trump’s special envoy to the Middle East Steve Witkoff previously told a cabinet meeting that the anticipated ceasefire would last 60 days and involve the release of ten hostages and nine bodies.

A source close to the negotiations told Sky News that the hostage release would take place in two waves during the 60 days and was conditional on the ceasefire.

Israeli strikes continue

It comes as Israeli attacks on Gaza continue.

According to hospital officials, at least 40 Palestinians were killed in the latest attacks on Gaza – including 10 people from the same family.

Nasser Hospital in the southern Gaza city of Khan Younis said the dead included 17 women and 10 children.

World

Why do so many from around the world try to cross the English Channel?

Published

23 hours ago

July 9, 2025

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Why do so many from around the world try to cross the English Channel?

While the politicians talk, so many people come from around the world to try to get across the Channel on small boats. But why?

Why make such a perilous crossing to try to get to a country that seems to be getting increasingly hostile to asylum seekers?

As the British and French leaders meet, with small boats at the forefront of their agenda, we came to northern France to get some answers.

It is not a new question, but it is peppered with fresh relevance.

Over the course of a morning spent around a migrant camp in Dunkirk, we meet migrants from Gaza, Iraq, Eritrea, South Sudan, Sri Lanka and beyond.

Some are fearful, waving us away; some are happy to talk. Very few are comfortable to be filmed.

All but one man – who says he’s come to the wrong place and actually wants to claim asylum in Paris – are intent on reaching Britain.

They see the calm seas, feel the light winds – perfect conditions for small boat crossings.

John has come here from South Sudan. He tells me he’s now 18 years old. He left his war-torn home nation just before his 16th birthday. He feels that reaching Britain is his destiny.

“England is my dream country,” he says. “It has been my dream since I was at school. It’s the country that colonised us and when I get there, I will feel like I am home.

“In England, they can give me an opportunity to succeed or to do whatever I need to do in my life. I feel like I am an English child, who was born in Africa.”

He says he would like to make a career in England, either as a journalist or in human resources, and, like many others we meet, is at pains to insist he will work hard.

The boat crossing is waved away as little more than an inconvenience – a trifle compared with the previous hardships of his journey towards Britain.

We meet a group of men who have all travelled from Gaza, intent on starting new lives in Britain and then bringing their families over to join them.

One man, who left Gaza two years ago, tells me that his son has since been shot in the leg “but there is no hospital for him to go to”.

Next to him, a man called Abdullah says he entered Europe through Greece and stayed there for months on end, but was told the Greek authorities would never allow him to bring over his family.

Britain, he thinks, will be more accommodating. “Gaza is being destroyed – we need help,” he says.

A man from Eritrea tells us he is escaping a failing country and has friends in Britain – he plans to become a bicycle courier in either London or Manchester.

He can’t stay in France, he says, because he doesn’t speak French. The English language is presented as a huge draw for many of the people we talk to, just as it had been during similar conversations over the course of many years.

I ask many of these people why they don’t want to stay in France, or another safe European country.

Some repeat that they cannot speak the language and feel ostracised. Another says that he tried, and failed, to get a residency permit in both France and Belgium.

But this is also, clearly, a flawed survey. Last year, five times as many people sought asylum in France as in Britain.

And French critics have long insisted that Britain, a country without a European-style ID card system, makes itself attractive to migrants who can “disappear”.

A young man from Iraq, with absolutely perfect English, comes for a chat. He oozes confidence and a certain amount of mischief.

It has taken him only seven days to get from Iraq to Dunkirk; when I ask how he has made the trip so quickly, he shrugs. “Money talks”.

He looks around him. “Let me tell you – all of these people you see around you will be getting to Britain and the first job they get will be in the black market, so they won’t be paying any tax.

“Back in the day in Britain, they used to welcome immigrants very well, but these days I don’t think they want to, because there’s too many of them coming by boat. Every day it’s about seven or 800 people. That’s too many people.”

“But,” I ask, “if those people are a problem – then what makes you different? Aren’t you a problem too?”

He shakes his head emphatically. “I know that I’m a very good guy. And I won’t be a problem. I’ll only stay in Britain for a few years and then I’ll leave again.”

A man from Sri Lanka says he “will feel safe” when he gets to Britain; a tall, smiling man from Ethiopia echoes the sentiment: “We are not safe in our home country so we have come all this way,” he says. “We want to work, to be part of Britain.”

Emmanuel is another from South Sudan – thoughtful and eloquent. He left his country five years ago – “at the start of COVID” – and has not seen his children in all that time. His aim is to start a new life in Britain, and then to bring his family to join him.

He is a trained electrical engineer, but says he could also work as a lorry driver. He is adamant that Britain has a responsibility to the people of its former colony.

“The British came to my country – colonising, killing, raping,” he said. “And we didn’t complain. We let it happen.

“I am not the problem. I won’t fight anyone; I want to work. And if I break the laws – if any immigrant breaks the laws – then fine, deport them.

“I know it won’t be easy – some people won’t like me, some people will. But England is my dream.”

World

Trump applying ‘heavy pressure’ on Netanyahu to end war in Gaza

Published

1 day ago

July 9, 2025

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Trump applying 'heavy pressure' on Netanyahu to end war in Gaza

US President Donald Trump is putting “heavy” pressure on Israeli Prime Minister Benjamin Netanyahu to end the war in Gaza, two sources close to the ceasefire negotiations have told Sky News.

One US source said: “The US pressure on Israel has begun, and tonight it will be heavy.”

The source, who is not authorised to speak publicly, was referring to the White House dinner on Monday night between Trump and Netanyahu.

A second Middle Eastern diplomatic source agreed that the American pressure on Israel would be intense.

Netanyahu arrived in Washington DC in the early hours of Monday morning and held meetings on Monday with Steve Witkoff, Trump’s Middle East envoy, and Marco Rubio, the secretary of state and national security adviser.

The Israeli prime minister plans to be in Washington until Thursday with meetings on Capitol Hill on Tuesday.

Trump has made clear his desire to bring the Gaza conflict to an end.

However, he has never articulated how a lasting peace, which would satisfy both the Israelis and Palestinians, could be achieved.

His varying comments about ownership of Gaza, moving Palestinians out of the territory and permanent resettlement, have presented a confusing policy.

Situation for Palestinians worse than ever

Over the coming days, we will see the extent to which Trump demands that Netanyahu accepts the current Gaza ceasefire deal, even if it falls short of Israel’s war aims – the elimination of Hamas.

The strategic objective to permanently remove Hamas seems always to have been impossible. Hamas as an entity was the extreme consequence of the Israeli occupation.

The Palestinians’ challenge has not gone away, and the situation for Palestinians now is worse than it has ever been in Gaza and also the West Bank. It is not clear how Trump plans to square that circle.

Trump’s oft-repeated desire to “stop the killing” is sincere. Those close to him often emphasise this. He is also looking to cement his legacy as a peacemaker. He genuinely craves the Nobel Peace Prize.

In this context, the complexities of conflicts – in Ukraine or Gaza – are often of secondary importance to the president.

If Netanyahu can be persuaded to end the war, what would he need?

The hostages back – for sure. That would require agreement from Hamas. They would only agree to this if they have guarantees on Gaza’s future and their own future. More circles to square.

Was White House dinner a key moment?

The Monday night dinner could have been a key moment for the Middle East. Two powerful men in the Blue Room of the White House, deciding the direction of the region.

Will it be seen as the moment the region was remoulded? But to whose benefit?

Trump is a dealmaker with an eye on the prize. But Netanyahu is a political master; they don’t call him “the magician” for nothing.

Trump makes decisions instinctively. He can shift position quickly and often listens to the last person in the room. Right now – that person is Netanyahu.

Gaza is one part of a jigsaw of challenges, which could become opportunities.

Diplomatic normalisation between Israel and the Arab world is a prize for Trump and could genuinely secure him the Nobel Peace Prize.

But without the Gaza piece, the jigsaw is incomplete.