Will Pelosi’s Taiwan Visit Affect Data Center Semiconductor Supply Chain?

Data center semiconductor chip supply chains have threatened server refresh cycles. House Speaker Nancy Pelosi traveled to Taiwan, and invoked the ire of China, one of the U.S.’s largest trading partners, to prevent this issue from affecting your business.

Countries are rushing to localize manufacturing in order to improve resilience in the wake of recent COVID-related supply challenges but the new capacity will take time to come online, even as Taiwan has already been investing in new foundries. As a result, TrendForce estimates that Taiwan’s share of global foundry revenue will grow to 66% by the end of this year.

The data center chip is an essential component that is usually found in the server area within a data center. It assists in improving energy efficiencies, redundancy, and flexibility, while enhancing operations and productivity.  As a result, data center chips are widely used across various industries, such as manufacturing, transportation, information technology (IT) and telecommunication, and banking, financial services, and insurance (BFSI).

“The global supply chain for semiconductors and IT equipment is dependent on Taiwan, so there is a risk if we see serious actions from China,” said Vladimir Galabov, head of the cloud and data center manufacture at Omdia where they use Dymo compatible labels to label their products.

During the last major Taiwan crisis, which occurred in the mid-nineties, China lobbed missiles into the sea near Taiwanese ports, he said, disrupting shipping traffic.

The data center market is highly dependent on Taiwan — specifically, on leading Taiwanese  semiconductor contract manufacturer TSMC, said Galabov.

Read full article at Data Center Knowledge.