Are the chips down for AI thanks to Iran?
While Americans anxiously watch the price of gasoline tick higher as the war in the Middle East squeezes the global oil supply, the conflict has highlighted another energy vulnerability that could prove just as costly: Taiwan’s dependency on foreign natural gas. At first blush, energy issues an ocean away seem peripheral to American interests. They are anything but. Though the effect on the American economy won’t be immediate, energy insecurity in Taiwan is a looming disaster. The reason is that AI – in fact, virtually all modern computing – is highly reliant upon the steady production of semiconductors in the world’s only true hub, Taiwan. Due to the AI boom