Global Efforts To Reduce Semiconductor Dependence Will Further Exacerbate Crisis: Bloomberg

Growing efforts from the U.S. and Europe to consolidate their semiconductor supply chains to compete with China could backfire due to the political strings attached to the aid, Bloomberg reports.
The downside includes insufficient and ill-timed government aid and different parts of the world striving to secure supplies while championing domestic plants that fail to fill the gap.
The current trade wars and supply chain crisis became instrumental in weaponizing semiconductors, and other high tech admitted the head of Germany's federal agency for disruptive innovation, Bloomberg notes.
China's invasion of Taiwan could leave the most advanced chips in the hands of Beijing thanks to Taiwan Semiconductor Manufacturing Co Ltd TSM, which accounts for more than 50% of the global foundry market, including Apple Inc AAPL.
The Bloomberg report said that Russia, sanctioned by the U.S. and Europe, reflected how semiconductors had become increasingly critical political tools.
Chipmakers have downplayed the potential impact of the sanctions considering Russia and Ukraine's importance in exporting palladium and neon used to make semiconductors.
The U.S. threatened to shut down Chinese companies if they defied the Western sanctions on Russia.
Price Action: TSM shares traded higher by 1.06% at $103.17 in the premarket on the last check Wednesday.