Sweet spot: Taiwanese company TSMC makes chips for not only F-35 fighters, but also Huawei. Its plants, important to both the U.S. and China, could be the safest place in the world if the two powers go to war.

台積電不僅為F-35 戰機生產晶片，也為華為生產晶片

如果這兩個大國發動戰爭，它對美國和中國都重要的工廠可能是全世界最安全的地方

Chip titan TSMC caught in crossfire between US and China

Geopolitical risks mount for Taiwan group after Trump's crackdown on customer Huawei

Taiwan's government is keenly aware that if TSMC were to move production sites it could weaken the island's security position, analysts say. The island's chip industry is the second-largest by revenue after the U.S. For many analysts, those factories and their role in the global economy act as an insurance policy for the island.

"The Taiwanese government will definitely hope TSMC keeps its most cutting-edge factories all in Taiwan," said Su Tzu-yun, director of the Institute for National Defense Security Research in Taipei. "That could make Taiwan a safer place. No one would want to damage TSMC's advanced chip production capacities, which are the hearts of many electronic devices."

Said another industry veteran, "TSMC's plants could be the world's most safe place if there is a war."

Taiwan's limited land, electricity and water resources will also force TSMC to evaluate overseas sites for plants, a source close to the chipmaker said. "After all, TSMC needs to find another place for the company's long-term production sustainability and growth."