The significance of semi-conductor chips in geopolitics became apparent in August when China suspended the export of sand – crucial in the production of semi-conductors – to Taiwan in the aftermath of Speaker Nancy Pelosi’s visit to Taiwan and the period of military demonstrations that followed. Taiwan’s role in the semi-conductor value chain was notable over the year before as automakers struggled to continue production during a global shortfall of chips.

“Even when the formal war ended, the economic costs would persist for years.”