Rattled supply chains: Over half of Taiwan firms feel the squeeze of US-Iran conflict

The ongoing US-Iran conflict is creating severe disruptions in global supply chains, particularly impacting the semiconductor ecosystem in Taiwan, China. Rising costs for raw materials and energy are pressuring profit margins, especially among foundry and packaging firms. Disruptions in logistics and inventory management are delaying product cycles and affecting technical development timelines. Compliance risks are escalating as companies navigate stricter export controls and evolving sanction lists, increasing operational complexity. Major players may accelerate regionalization of their supply chains to mitigate geopolitical exposure. In the short term, Taiwanese firms may need to reconfigure production strategies, while long-term shifts toward supply chain resilience are likely. Over the next 12 to 24 months, the industry will increasingly prioritize risk mitigation, with supply chain robustness becoming a key competitive advantage.