# Computer Chips Are the Most Magnificent Things Humanity Has Ever Made

> Microchips, the tiny cities of silicon, power AI and global economies while Taiwan's semiconductor hub faces geopolitical threats.
- Title: Computer Chips Are the Most Magnificent Things Humanity Has…
- Summary: Microchips, the tiny cities of silicon, power AI and global economies while Taiwan's semiconductor hub faces geopolitical threats. Taiwan's TSMC produces 80%…
- Keywords: taiwan, tsm, semiconductors, chips, geopolitical, supply chain, taiwanese, silicon valley, military, politics, news, Computer
- Source: The New Yorker — https://newyorker.com/magazine/2026/10/26/computer-chips-are-the-most-magnificent-things-weve-ever-made
- Author: Gideon Lewis-Kraus
- Published: 2026-10-19T10:00:00+00:00
- Read time: 2 min
- Topics: taiwan, tsm, semiconductors, ai, chips, geopolitical, supply chain, taiwanese, silicon valley, military, politics, news
## Microchips as Functional Cities
A chip contains a city of electrons that power airplanes, stock markets, and AI.
## Historical Shift in Chip Production
American semiconductor firms faced Japanese competition by the 1980s, leading to government intervention.
## Nvidia's Dominance in AI
Nvidia, the world's most valuable company, powers ai with chips that account for 15 cents of every dollar in the s&p 500.
## Taiwan's Strategic Importance
Taiwan produces 80% of the world's advanced chips, critical for ai and global supply chains.
## Geopolitical Threats to Taiwan
China's potential invasion of Taiwan could disrupt global supply chains for weeks, costing $10.6 trillion.
## TSMC's Role in Chip Production
TSMC, a taiwanese company, makes 90% of the world's advanced chips with a market cap of $2 trillion.
## The EUV Machine Challenge
ASML's extreme ultraviolet machines require precision engineering to produce advanced chips.
## TSMC's Production Process
TSMC processes silicon wafers through 1,000 steps to create advanced chips.
## Geopolitical Tensions
Taiwan's strategic position near china makes it vulnerable to invasion, threatening global chip supply chains.
## TSMC's Impact on AI
TSMC's chips power ai systems like chatgpt and claude, critical for global technology.
## The Chip Shortage Crisis
Chip shortages have led to automotive manufacturers struggling to meet demand for new vehicles.
## TSMC's Cultural Impact
TSMC's culture emphasizes precision and teamwork, with employees sharing a common background.
## The Future of Chip Production
Advanced chip production requires extreme precision, with even a single error causing significant damage.
## The Role of Morris Chang
Morris Chang founded TSMC and transformed it into a global semiconductor leader.
## The Impact of AI on Chips
AI demand has increased the need for advanced chips, driving tsmc to expand production.
## The Consequence of Chip Shortages
Chip shortages could lead to the inability to afford basic household items like dishwashers and phones.
## Key takeaway

Taiwan's TSMC produces 80% of the world's advanced chips, critical for AI and global supply chains, risking economic collapse if Chinese invasion occurs.