# Global chip supply chain increasingly vulnerable to massive disruption: Study | Tech News (HT Tech) > If Taiwan were unable to make chips for a year, it would cost the global electronics industry almost half a trillion dollars in revenue, the report found: The global electronics supply chain would come to a halt. # Global chip supply chain increasingly vulnerable to massive disruption: Study ## If Taiwan were unable to make chips for a year, it would cost the global electronics industry almost half a trillion dollars in revenue, the report found: "The global electronics supply chain would come to a halt." Aug 21 2022, 16:19 IST ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png) ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png) ![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png) ![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png) ![The report comes amid a global chip shortage that started with overbooked factories in Taiwan late last year.](https://images.hindustantimes.com/tech/img/2021/04/01/1600x900/_827b08d4-7e83-11ea-aedf-4d2519fcedc3_1617278930812.jpg) The report comes amid a global chip shortage that started with overbooked factories in Taiwan late last year. (Pixabay) ![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png) ### By REUTERS A new study from a US industry group found that the global semiconductor supply chain has become increasingly vulnerable to natural disasters and geopolitical disruptions because suppliers have become more concentrated in distinct regions. The report comes amid a global chip shortage that started with overbooked factories in Taiwan late last year but has since been exacerbated by a fire at a plant in Japan, a freeze that knocked out electricity in the US state of Texas and a worsening drought in Taiwan this year. The shortage has idled some production lines at automobile factories in the United States, Europe and Asia. Also read: Arm unveils new technology that competes more with Intel chips Also read click here. Modern chipmaking involves more than a thousand steps and requires complex intellectual property, tools and chemicals from around the world. But the Semiconductor Industry Association, representing most US chipmakers, on Thursday said it found more than 50 places in the supply chain where a single region has more than 65% market share. Intellectual property and software to design cutting-edge chips, for example, is dominated by the United States, while special gases key to fabricating chips come from Europe. And the manufacturing of the most advanced chips is completely located in Asia - 92% of it in Taiwan. If Taiwan were unable to make chips for a year, it would cost the global electronics industry almost half a trillion dollars in revenue, the report found: "The global electronics supply chain would come to a halt." Still, the study warned, a go-it-alone approach in which governments try to replicate the supply chain domestically is infeasible because it would cost $1.2 trillion globally - with up to $450 billion of that cost in United States alone - causing the price of chips to skyrocket. Read more: US says promoting chip cooperation with Taiwan is a priority In some cases, though, it called for incentives to create "minimum viable capacity" in regions that lack any part of the supply chain. In the case of the United States and Europe, that would mean new advanced chip factories to balance concentration in Taiwan and South Korea. "We don't have enough semiconductor manufacturing in the United States ... And it's got to be fixed with the assistance of the U government," John Neuffer, chief executive officer of the association, told Reuters. Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. 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