Embargo.

This coolbert:

"TSMC is just so dominant. It no longer really has much competition at all on the high end."

Embargo Japan 1940! Embargo China 2021?  Oil 1940. Semi-conductor chips 2021?

From Freeper and various sources. | 04/14/2021.

"Taiwan Says Its Chip Firms Will Adhere to New US Rules Blacklisting China Supercomputing Entities"

"TAIPEI—Taiwan said on Wednesday its chip companies will adhere to U.S. rules after Washington added seven Chinese supercomputing entities last week to an economic blacklist and after a Taipei-based chipmaker halted orders from one of the entities named"

Taiwan Semiconductor Manufacturing Co  in particular absolutely essential to the HIGH-END [as deemed] semi-conductor fabrication process. HIGH-END integrated circuits of the type you find in super-computers.

War between China and Taiwan [involving the USA] would be a disaster for the world economy without question. NO semi-conductors and NO high-technology development beyond what already is. A company such as TSMC hard to replace even in the long run. My understanding is that nations such as Taiwan and South Korea not only manufacture the HIGH-END chips but also manufacture the machines that make the chips.

My instantaneous and intuitive response upon reading this embargo headline is that if and when conflict occurs between China and Taiwan [and the USA], the "blacklisting" will be seen as analogous to the 1940 Japanese oil embargo.

ACTION AS A PRELUDE TO WAR!

In essence you are depriving the Chinese of an essential element vital for the functioning of modern society. The Chinese will feel COMPELLED to take action. 

Let us hope not!

coolbert.