Executives at publicly traded US companies are becoming increasingly worried about the spectre of a further escalation of tensions over Taiwan, a major supplier of crucial components like semiconductors.
The number of annual regulatory filings citing Taiwan as a risk factor has risen significantly over the past 12 months, according to Financial Times calculations based on Sentieo data. In March, a popular time for releasing so-called “10-k” reports, 116 companies mentioned Taiwan as a risk to their business, and the rolling 12-month average this month reached its highest level in at least 16 years.
Technology companies represent the sector most concerned, with those in the semiconductor industry raising the loudest alarm. This is because Taiwan, which is the biggest producer of the most advanced chips, is rapidly becoming one of the world’s most dangerous geopolitical flashpoints. The fear is that in the event of a conflict with China, US firms will be unable to get the microchips needed to make smartphones, electric cars, new weapons, computers industrial machines, and even medical devices. Healthcare is the second most-concerned sector.