Nearly every high-end chip powering Apple devices is manufactured in Taiwan, a small island democracy over which China claims ownership. U.S. officials have warned Apple and the rest of Silicon Valley for years that a Chinese blockade, invasion or prolonged military standoff — possibly coming by 2027, according to intelligence sources — could cut off the chip supply.
And with a too little, too late response by tech giants grinding forward, a chip shortage could crush the tech industry, hobble the U.S. economy and keep your next iPhone out of reach for a long time, according to a new report.