The founder of Apple's key supplier said the US stock market would collapse in '10 seconds' if war breaks out in Taiwan!

[Daniel Nenni]

• Foxconn founder Terry Gou said the US stock market would crash in 10 seconds if war were to break out over Taiwan. He said Taiwan's role in the global economy is far more important than that of Ukraine. China claims self-ruled Taiwan — the world's top chip supplier — as its territory.

The founder of a key Apple supplier warned of disaster on Wall Street should a war break out over Taiwan.

"If a war breaks out in the Taiwan Strait, it wouldn't take a month or even an hour, but just 10 seconds for the Wall Street stock market to collapse," Taiwanese billionaire Terry Gou wrote on Facebook on Wednesday, according to an Insider translation. His post appears to have been deleted by Thursday morning, although a cached copy of the post remains.

Gou, the 72-year-old founder of the contract manufacturing giant Foxconn, wrote the post after meeting New York Times columnist Thomas Friedman on the same day.

He said he told Friedman that Taiwan's role in the global economy is far more important than that of Ukraine, which is now embroiled in a war with Russia. China claims self-ruled Taiwan — the world's top chip supplier — as its territory and has been ramping up military drills around the island.

Gou added Taiwan may be able to hold out in a war for three months, but the impact on the world's economy and financial markets would be huge and immediate.

Gou founded Foxconn, also known as Hon Hai Precision Industry, in 1974. He is worth nearly $7.2 billion, with a substantial portion of his wealth derived from a 12.6% stake in the publicly traded division of Foxconn, according to the Bloomberg Billionaires Index.

The tycoon's comments about geopolitical tensions over the Taiwan Strait come amid speculation over his political ambitions.

The business magnate stepped down as Foxconn's chairman in 2019 in a bid to run for Taiwan's presidency, but dropped out of the race after he failed to win the nomination of KMT, Taiwan's main opposition party. He tried again this year, but again failed to win the party's nomination.

Some analysts think Gou may still make a run for the island's top job, the South China Morning Post reported on July 18.

Gou did not immediately respond to a request for comment from Insider sent to his verified Instagram account.

The Taiwan presidential election is scheduled to take place on January 13, 2024.

Read the original article on Business Insider

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[Arthur Hanson]

As one who trades the market for a living, I fully agree, an invasion by the Chinese would be a disaster for all with no winners and only losers. Taking out the fabs would be overshadowed by the political and commercial damage on a scale of almost unimaginable size and reach.

 

[delong.height]

Absolutely, it will take down Apple immediately, which will have a long-term impact to the world's supply chain and stock market in general as Apple topped $3 trillion. It will bring damages to AMD, Nvidia, and all those fabless players because they are still unprepared of that situation. The only one that's isolated from this is Intel, they suffer the least damage, or they be the biggest beneficiary.

People who are calling it impossible for it to occur are stupid enough that they don't know an economic nuclear weapon has been created, and the trigger is controlled by the Chinese. They can call 'f**k it' any day from now if they are infuriated by US's action. And you just can't do anything about it except you would wish it either will end quickly or reliable foundries growing with enough capacity to address all the demands.

And honestly, I think the move is not to get TSMC, but to control the island because it is geographically important. EUV may be important, but it can be done if China decides to replicate a semiconductor ecosystem.

 

[ta152h]

Absolutely, it will take down Apple immediately, which will have a long-term impact to the world's supply chain and stock market in general as Apple topped $3 trillion. It will bring damages to AMD, Nvidia, and all those fabless players because they are still unprepared of that situation. The only one that's isolated from this is Intel, they suffer the least damage, or they be the biggest beneficiary.

People who are calling it impossible for it to occur are stupid enough that they don't know an economic nuclear weapon has been created, and the trigger is controlled by the Chinese. They can call 'f**k it' any day from now if they are infuriated by US's action. And you just can't do anything about it except you would wish it either will end quickly or reliable foundries growing with enough capacity to address all the demands.

And honestly, I think the move is not to get TSMC, but to control the island because it is geographically important. EUV may be important, but it can be done if China decides to replicate a semiconductor ecosystem.

Yeah, I agree, we should build up Taiwan and move a lot of ships to that region, and leave them there.

Japan is increasing their military as well, but that's going to take a while. And I'm pretty sure the Chinese remember the a#$-kicking the took from Japan in WW II, and probably have an almost instinctive fear of them.

The most provocative thing is to be weak. Responding to aggression, aggressively, normally avoids war (not always, of course), being weak and meek provokes more aggression, since it's often rewarded. We could spank China three times sideways, and we better let them know it. Or they'll do something like this, assuming our response will not end in their defeat, and will instead grant them rewards.

Once Japan enters the equation, China has big problems. And they know it. Japanese fighters are legendary, their technology excellent, and they are acutely concerned about what's going on in their neck of the woods. China may want to act before Japan becomes militarily significant. And before Biden leaves office. So, anything could happen, but it's such a huge step, will they dare to take it?

And let's keep in mind, China will be economically ruined by the attack too. It's not just the west.

 

[delong.height]

Japan probably don't want to get into war with China. They want to benefit from the situation, so that they can rebuild their Japanese semiconductor industry. They want things to intensify so they benefit from Taiwan.

 

[Mooredaddy]

Japan probably don't want to get into war with China. They want to benefit from the situation, so that they can rebuild their Japanese semiconductor industry. They want things to intensify so they benefit from Taiwan.

No they don't. The first island chains integrity is crucial to Japan's security.

 

[tonyget]

 

[mdsomuncu]

I think people here are really not knowledgeable about how wars work. US having the biggest force projection capacity and military footprint DISTRIBUTED in the world doesn't mean it can defeat China in its backyard. Also there is the fact that TSMC would be destroyed anyway even if China fails to takeover Taiwan.

 

[hist78]

I think people here are really not knowledgeable about how wars work. US having the biggest force projection capacity and military footprint DISTRIBUTED in the world doesn't mean it can defeat China in its backyard. Also there is the fact that TSMC would be destroyed anyway even if China fails to takeover Taiwan.

And PRC's stock markets will crash in no time too. In addition to destroyed Taiwan's fabs, PRC's major semiconductor fabs will be ruined under Taiwan's missile attacks. It's a war with no clear winner.

 

[delong.height]

No they don't. The first island chains integrity is crucial to Japan's security.

Likewise, the control of Taiwan is also important to the Chinese. So, destined for a war if that's what you think.

 

[delong.height]

And PRC's stock markets will crash in no time too. In addition to destroyed Taiwan's fabs, PRC's major semiconductor fabs will be ruined under Taiwan's missile attacks. It's a war with no clear winner.

No, they won't. Countries with nuclear weapon is not afraid to show their deadly weapon to their enemy. Any missiles fired into China would be considered as an act of War and self-proclaimed independence that would immediately get fired back.

 

[delong.height]

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The thing here is none of these wars matter or significant as the one we could face. If a war breaks out, if no party withdraw from this, it will soon become a WWIII if you consider all the forces out there. (China, Taiwan, South/North Korea, Japan, Russia, and USA)

The most damaging one was Pearl Harbor Attack, taken by the Japanese. But that was a time where US still has its industrial powers. It's exporting goods to Europe and countries around the world. Now it's China and other Asian countries that's doing all these.

 

[Daniel Nenni]

The thing here is none of these wars matter or significant as the one we could face. If a war breaks out, if no party withdraw from this, it will soon become a WWIII if you consider all the forces out there. (China, Taiwan, South/North Korea, Japan, Russia, and USA)

The most damaging one was Pearl Harbor Attack, taken by the Japanese. But that was a time where US still has its industrial powers. It's exporting goods to Europe and countries around the world. Now it's China and other Asian countries that's doing all these.

The Ukraine war has taught us a few things. I think a war with China and Taiwan would be similar. Like the Ukraine, Taiwan would have military backers but the island itself would be completely destroyed. Civilian targets are not safe and I think the fabs would be on the first strike list.

 

[mdsomuncu]

And PRC's stock markets will crash in no time too. In addition to destroyed Taiwan's fabs, PRC's major semiconductor fabs will be ruined under Taiwan's missile attacks. It's a war with no clear winner.

PRC stock market is already a meme at this point. Chinese people are not invested in their stock market at all. Also taiwanese missiles destroying anything inside mainland with any confidence is not the reality we are facing. PLA's anti access, area denial bubble is just too strong even USAF doesn't have confidence in itself to be able to sustainably penetrate it with acceptable casualty levels.

 

[mdsomuncu]

The Ukraine war has taught us a few things. I think a war with China and Taiwan would be similar. Like the Ukraine, Taiwan would have military backers but the island itself would be completely destroyed. Civilian targets are not safe and I think the fabs would be on the first strike list.

Yep, it is a well known fact inside taiwan that even if China wins or loses the war, taiwan will no longer exist.

 

[cliff]

We offer automatic migration from Taiwan to upstate NY. Rectangles only please.