Barron’s (March 26)
“The war in Iran and consequent blockage of the Strait of Hormuz offer a stark reminder of a different geopolitical risk, one lurking in tech-heavy global portfolios that are betting on artificial intelligence: Taiwan.” 75% of global foundry revenue originates in the island nation. “Investors often put Taiwan in the ‘too big to fail’ bucket, meaning China wouldn’t dare attack anytime soon because of the cascading ramifications…. But the far-reaching ripples from Iran’s attacks on the Strait of Hormuz, itself once thought to be in the unlikely bucket, is a reminder of the risks to global chokeholds and the potential spillover from geopolitical conflict.”
Tags: AI, Attack, Cascading, China, Foundry, Geopolitical risk, Global chokeholds, Hormuz, Investors, Iran, Ramifications, Revenue, Spillover, Taiwan, War
