A protracted war in the Persian Gulf endangers the global supply of semiconductors.
Barring a quick end to hostilities and the re-opening of the Strait of Hormuz, Taiwan will struggle to satisfy its needs for liquefied natural gas, as well as other chemicals — like helium, a third of which is processed in Qatar — on which chip production depends, Bloomberg wrote: The island relies upon imports for 97% of its energy needs.
The war is sending shockwaves throughout Asian economies, Carnegie Endowment analysts wrote, particularly imperiling those, like South Korea, that depend on fuel imports to power their booming semiconductor industries; in the four trading days following the conflict’s start, Korean stocks suffered their worst plunge since 2008.
