KUALA LUMPUR (Aug 3): Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has said that a Chinese invasion of Taiwan would halt chip production.

In a recent interview with CNN, TSMC chairman Mark Liu said such an invasion would create "great economic turmoil" on both sides of the Taiwan Strait.

Liu said that a Chinese attack against the island would be a geopolitical catastrophe, adding that TSMC could not be controlled by force.

However, Liu opined that as sales in China account for 10% of TSMC's revenue, stopping the chipmaker's production would deprive China of the most advanced components used in the latest technologies, including those with military applications, and thus it would act as a deterrent.

Since 2020, semiconductor shortages have created problems for the manufacturing of various products, such as cars, due to strong demand for high-tech equipment generated by the pandemic.