On March 24, the Philippines became the first country in the world to already declare an energy emergency due to the US and Israeli war on Iran.
At the same time, as Politico writes, Iran's blockage of the Strait of Hormuz has also cut off Taiwan from suppliers from Qatar, which provide more than a third of the total volume of liquefied natural gas (LNG) needed to produce up to 40% of the island's electricity.
The publication notes that due to “excessive dependence” on Qatar, Taiwan becomes even more vulnerable to supply fluctuations in the Persian Gulf.
According to Politico, any supply disruptions could have a major impact on the industry. TSMC, which produces about 90% of the world's most advanced chips, consumes about 9% of Taiwan's electricity. The article noted that the company's products are used in military systems, smartphones and medical equipment, and the semiconductor sector forms about 20% of the island's GDP.
The publication also reports that in the event of a prolonged blockage of the Strait of Hormuz, Taipei may be forced to reduce electricity supplies either to the population or to industry, including TSMC.
Experts warn that power outages in Taiwan could directly affect global chip supply chains, including artificial intelligence servers and cars, the article said. Therefore, delays in chip shipments could have negative consequences for production and markets around the world.
The publication quotes Senator Todd Young, a Republican from Indiana (USA), as expressing concern that chip production depends on resources from various countries, including the Persian Gulf, and that this system is fragile.
Similar assessments regarding risks are also spreading among representatives of the US Democratic Party, the publication writes. Congresswoman Ami Bera of California, a member of the US House Subcommittee on East Asian and Pacific Affairs, also notes that there is a threat to global semiconductor supply chains. The United States and its Asian allies are already looking at ways to address the problem to prevent the outages from worsening, she said.
Politico notes that Taiwan's TSMC does not yet expect a “significant impact” but is closely monitoring the situation. The island's Ministry of Economy said domestic power supplies were stable for now, but state-owned utility Taipower was already developing appropriate response plans.
Context
Against the backdrop of the conflict between the United States and Israel with Iran, shipping through the Strait of Hormuz, one of the most important routes for global oil trade from the Middle East to Asia, Europe and the United States, has practically stopped since March 1. This led to a sharp rise in oil prices.
On March 10, information appeared in the media that Iran had allegedly begun mining the strait. On March 14, Trump called on China, France, Japan, South Korea, the UK and other countries to send ships to create conditions of openness and security in the Strait of Hormuz.
In early March, Iran launched a series of attacks on Qatar's energy facilities: on March 2, drones damaged the country's infrastructure, causing QatarEnergy to declare “force majeure” the next day and suspend production of liquefied natural gas and related products. On March 18, the Ras Laffan area, one of Qatar's largest industrial centers, was again the target of a missile attack, causing significant damage to QatarEnergy facilities.
