Ken Griffin Warns Losing TSMC Chips Could Trigger a 'Great Depression'

Ken Griffin, founder and CEO of Citadel, warned at the Goldman Sachs Apex Symposium that losing access to Taiwanese semiconductor chips (TSMC) could cause U.S. gross domestic product (GDP) to decline by 8% within six months, triggering what he called a modern "Great Depression."

Details

Griffin, who runs one of the world's largest hedge funds, emphasized that TSMC chips are in "every high-end product," making them a critical component of global supply chains. He noted that reliance on Taiwan for advanced chip manufacturing poses a strategic risk to the U.S. economy.

Context

The remarks come amid rising geopolitical tensions between the U.S. and China over Taiwan. Washington is also boosting domestic semiconductor production through the CHIPS Act to reduce dependence on Taiwan.

What This Means for Investors

Griffin's warning highlights the geopolitical risks facing the chip supply chain, which could impact companies like Boeing (BA) that rely on these components. Investors should monitor developments in Taiwan and U.S. efforts to boost domestic production.