Taiwan (geopolitical concentration risk)
Home of TSMC; single-island concentration of leading-edge fab capacity
Taiwan produces the overwhelming majority of the world's leading-edge (<=5nm/3nm/2nm) logic via TSMC, making the island the ultimate physical chokepoint of the AI supply chain — a 'Silicon Shield' that is also a systemic risk given cross-strait tensions. Despite TSMC's Arizona, Japan, and Germany fabs, the most advanced nodes and CoWoS packaging remain concentrated on the island through 2026. Any disruption (blockade, conflict, earthquake) would cascade across every downstream node in this graph.
Leading-edge share
~90%+ of <5nm
Key firm
TSMC
Risk
cross-strait tension
How it fits the stack
Taiwan (geopolitical concentration risk) with what it depends on (above) and what it feeds (below). The figure renders as a crawlable diagram and upgrades to an interactive 3D graph as it scrolls into view.
Taiwan (geopolitical concentration risk) in the AI stack. Taiwan (geopolitical concentration risk) with its immediate upstream dependencies (top) and downstream dependents (bottom) in the AI value chain. Hover a node in 3D, or read the full relationships below.
Graph data (text) — 5 entities, 5 relationships
- SK Hynix —uses→ Taiwan (geopolitical concentration risk)
- TSMC (Taiwan Semiconductor Manufacturing Company) —hosts→ Taiwan (geopolitical concentration risk)
- TSMC (Taiwan Semiconductor Manufacturing Company) —depends on→ Taiwan (geopolitical concentration risk)
- TSMC CoWoS (Chip-on-Wafer-on-Substrate) —hosts→ Taiwan (geopolitical concentration risk)
- TSMC Fab 25 / Baoshan (N2 ramp) —depends on→ Taiwan (geopolitical concentration risk)
Feeds ↓ · 5