If Taiwan is invaded, TSMC and ASML will shut down chip manufacturing with a single click.

Taiwan is embarking on a new chapter with the new government led by President Tsai Ing-wen, while the situation in the Taiwan Strait has become a focus of global attention. Of particular interest is Taiwan's semiconductor giant, TSMC, which holds a crucial position in the world's chip manufacturing industry. In recent years, TSMC has diversified its production by establishing multiple wafer fabs in the United States, Japan, and other locations. However, the advanced manufacturing processes are still rooted in Taiwan. In the event of a Chinese attack on Taiwan, how will TSMC and its partners respond?

ASML Can Remote Shutdown EUV Operations

According to a report by Bloomberg, in the event of a Chinese attack on Taiwan, Dutch semiconductor equipment manufacturer ASML and TSMC can remotely halt the operation of TSMC's world-leading chip manufacturing equipment, Extreme Ultraviolet Lithography (EUV).

EUV is a microfabrication technology that uses extreme ultraviolet wavelength and is currently used for advanced processes below 7 nanometers. TSMC is the single largest customer with the most EUV machines. ASML is the only company globally producing EUV machines, each priced at over 200 million euros. The Dutch government has long regulated ASML technology strictly to prevent it from falling into the wrong hands.

No Country Can Control TSMC by Force

According to Bloomberg, ASML has assured Dutch government officials that the company has the capability to remotely stop its machines; Dutch authorities have simulated the possibility of Chinese aggression against Taiwan to enhance risk assessment. Sources say ASML can remotely shut down EUV as a "kill switch."

As reported by CNA, TSMC Chairman Mark Liu hinted in a CNN interview last September that any aggressor invading Taiwan would find TSMC's chip manufacturing machines inoperable.

At that time, Liu stated:

No country can control TSMC by force, and any military invasion would render TSMC's facilities inoperable.

Jensen Huang Emphasizes Taiwan's Importance Again

Nvidia CEO Jensen Huang, in an interview with Bloomberg yesterday, also stated that Taiwan is at the center of the world's technology supply chain and is essential for Nvidia's operations.

We need Taiwan to do our job!