The Central Intelligence Agency (CIA) has held a series of secret briefings for executives of major technology companies, including Apple, Nvidia, and AMD. The meetings focused on China's preparations for a possible military invasion of Taiwan in 2027.
As reported by Hvylya, citing The New York Times and its sources and documents, intelligence officials warned that a blockade of the island by Beijing would sever the supply of advanced chips, bringing the US tech industry to its knees.
US Treasury Secretary Scott Bessent described the threat in stark terms at the World Economic Forum in Davos: "The single biggest threat to the global economy, the single point of failure, is that 97 percent of high-end chips are made in Taiwan. If that island is blockaded and the capacity destroyed, it is an economic apocalypse."
According to a confidential report by the Semiconductor Industry Association (SIA), the loss of Taiwanese chips would trigger the deepest crisis since the Great Depression. US GDP could plummet by 11 percent — double the decline seen during the 2008 recession. China is projected to face a 16 percent drop.
The publication notes that tech giants had ignored the issue for years, focusing on profits. However, the situation shifted following intelligence warnings. In the summer of 2023, CEOs Tim Cook (Apple), Jensen Huang (Nvidia), and Lisa Su (AMD) attended a closed-door briefing where they were informed of China's rising military spending. Following the meeting, Cook reportedly admitted to officials that he now sleeps "with one eye open."
The US administration is attempting to mitigate risks through a combination of subsidies and threats. Donald Trump is actively utilizing tariffs to pressure companies into relocating production to America. This approach is yielding results: TSMC has agreed to increase its US investment by $100 billion and construct four new plants by 2028.
Intel, finding itself in a difficult position, took the unprecedented step of transferring 10 percent of its equity to the US government in exchange for $8.9 billion in subsidies. Nvidia and Apple have also pledged to purchase more US-made chips.
Nevertheless, full independence from Taiwan remains a distant prospect. Even the initial AI chips manufactured by Nvidia at its Arizona plant had to be shipped back to Taiwan for final packaging.